Linear Regression

Linear regression is an important statistical method in quantitative trading used to analyze time series trends by fitting the best straight line using the least squares method.

Calculation Principle

Linear regression is calculated using the following formula:

y = a + bx

Where:

• y: Predicted value
• a: Intercept
• b: Slope
• x: Time series

Parameter Description

• Input Parameters: One K-line data series
• timeperiod: Calculation period, default 14
• Output: Linear regression predicted value

Usage Recommendations

1. Adjust calculation period according to actual needs
2. Pay attention to data time span
3. Consider data frequency
4. Pay attention to data alignment
5. Recalculate periodically
6. Pay attention to result interpretation
7. Combine with other technical indicators

Notes

• Ensure data quality
• Pay attention to data preprocessing
• Consider the impact of extreme values
• Pay attention to the impact of calculation period
• Consider data stationarity
• Pay attention to result stability
• Consider the impact of sample size
• Pay attention to trend persistence
• Consider changes in market environment