Linear Regression Oscillator
The calculation basis of the Linear Regression Oscillator (LRO) indicator values includes the difference between the final and initial points of the linear regression.
The indicator is drawn in a separate window in the form of a histogram.
It has one parameter:
- Per - the number of bars (candles) used in calculation of the indicator value.
You can use the LRO indicator as an oscillator and open transactions under the following conditions:
- When the histogram color changes.
- When the zero line is crossed.
- When a divergence is formed.
The indicator changes color for green and is above a signal line.
When the indicator changes color to red, we close a long position.
The indicator changes color for red and is below a signal line.
When the indicator changes color to green, we close a short position.