Linear Regression Intercept

Linear regression intercept is an important indicator in quantitative trading used to analyze time series trends, representing the intersection point of the linear regression line with the y-axis.

Calculation Principle

Linear regression intercept is calculated using the following formula:

a = ȳ - b × x̄

Where:

• a: Intercept
• ȳ: Mean value of y
• b: Slope
• x̄: Mean value of x

Parameter Description

• Input Parameters: One K-line data series
• timeperiod: Calculation period, default 14
• Output: Linear regression intercept 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
8. Pay attention to changes in the intercept

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
• Pay attention to intercept interpretation