Periodic Linear Regressions

Periodic Linear Regressions fits a linear regression to price over each anchor period and resets when a new period begins: anchored calculation in the spirit of periodic VWAPs, applied to best-fit lines. Optional extremities scaled by the root mean squared error between price and the fit surround it with a linear regression channel, turning a slope estimate into usable support and resistance.

How to Trade the Periodic Linear Regressions?

• Slope color: with Bicolor enabled, green marks an upward fit and red a downward one, an immediate per-period regime read.
• Price at an extremity: the RMSE bands mark the channel's edges, most useful inside ranges and channels.
• Static line's angle: the straight fit shows how linear the period's trend has been and hints at its continuation.
• Anchor marks: flag where each new calculation period begins.

Two mechanical notes: a regression needs at least two points, so the static line cannot exist on a period's first bar and the rolling line starts plotting on the third; and the static line re-fits (and may repaint) until its period ends, while the rolling line extends from previously calculated points.

Periodic Linear Regressions Settings

• Method: "Static" draws the period's straight best-fit line; "Rolling" plots the evolving endpoint of successive fits.
• Anchor Type: "Periodic" resets each Anchor Period; "First Bar" runs one calculation from the start and works exclusively with Rolling.
• Anchor Period: the reset interval for periodic anchoring.
• Source: the input series being fitted.
• Multiple: scales the distance of the RMSE extremities.
• Show Extremities: toggles the upper and lower bands.
• Color, gradient (Rolling only), and dashboard location/size options handle presentation.

Frequently Asked Questions

Should I use the Rolling or Static method?

How does the anchoring compare with VWAP?

How do I access Periodic Linear Regressions?