Linear Regression Slope

Linear regression slope is an important indicator in quantitative trading used to measure the direction and strength of a trend, representing the degree of tilt of the linear regression line.

Calculation Principle

Linear regression slope is calculated using the following formula:

b = Σ((x - x̄)(y - ȳ)) / Σ((x - x̄)²)

Where:

• b: Slope
• x: Time series
• y: Price series
• x̄: Mean value of x
• ȳ: Mean value of y

Parameter Description

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

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 slope interpretation