Linear regression is a statistical tool used to predict the future from past data. It is used to determine when prices are overextended.
A Linear Regression trendline is simply a trendline drawn between two points using the least squares fit method. The trendline is displayed in the exact middle of the prices. If you think of this trendline as the “equilibrium” price, any move above or below the trendline indicates overzealous buyers or sellers.
If you had to guess what a currency pair« Back to Glossary Index