Linear regression (Linear Regression) is a statistical method to track market trends. Its results are usually similar to moving averages. But unlike the moving average, linear regression has a relatively small delay and is more sensitive to price changes.

Linear regression is a statistical analysis method that uses regression analysis in mathematical statistics to determine the quantitative relationship between two or more variables. It is widely used. The expression is y = w’x+e, where e is a normal distribution whose error follows a mean value of 0. In regression analysis, only one independent variable and one dependent variable are included, and the relationship between the two can be approximated by a straight line. This kind of regression analysis is called unary linear regression analysis.

The function of linear regression is to find the main trend of the market with a small delay (compared to the market price). When the price is the same as the trend of the linear regression indicator in a smaller range, it can also point out the divergence of the future trend.

Analysis skills:

1. Linear regression can indicate whether there is a bull market/bear market in the current market.
2. When the indicator crosses the price, the trend change can be determined. However, due to some delays in linear regression, it can only be used as a confirmation. Note: When the price changes consistently along the price, it means that the market trend will continue.