Define: Linear Regression Indicator

UK Accounting Glossary

Definition: Linear Regression Indicator



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Full Definition of Linear Regression Indicator


The Linear Regression Indicator is used for trend identification and trend following in a similar fashion to moving averages.

The Linear Regression Indicator plots the endpoints of a whole series of linear regression lines drawn on consecutive days. The advantage of the Linear Regression Indicator over a normal moving average is that it has less lag than the moving average, responding quicker to changes in direction. The downside is that it is more prone to whipsaws.

The indicator should not be confused with Linear Regression Trendlines which are straight lines fitted to a series of data points.


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Definition Sources


Definitions for Linear Regression Indicator are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 22nd March 2020.