ClearPath Trader

Linear Regression

Best-fit trend line through recent closes. Slope shows drift; residuals show how extended price is from fair trend.

Category: Trend · Complexity: ★★☆☆☆ (2/5)

Tags: trend, live-overlay, price

Live chart overlay: LRC

Linear Regression chart illustration

Formula

Least-squares line: P ≈ a + b·t over the lookback window

How to read

Slope b is drift. Price far above/below the line is statistically stretched versus the fitted trend.

Limitations

Refits every bar (the line moves). Not a crystal ball for the next close.

Typical settings

20 or 50

Linear Regression is part of the ClearPath Encyclopedia of Indicators — 190 models explained with standard SVG illustrations, so you can study an indicator before you put it on a live chart.

Browse the full indicator directory →