Plots the square of the correlation coefficient based on the MLR for the currently displayed chart.
This is the measure of the degree to which two variables are linearly related. The study computes between 1 and zero with meaning the correlation is absolute within the trend and zero that there is either no trend or there is a reverse correlation, e.g. a sharp change in trend.
The use of this study within Congestion Count is a useful way of identifying a sideways pattern quickly. You then can use another indicator to signal the breakout and its direction. The set up is as follows. Congestion Count records a value of 10 or higher. This means that the last 10 bars have touched each other’s range on a consecutive basis. MLR Squared records a value below 10. The breakout occurs when price closes outside of the 3rd deviation of the Volatility Time Band.
Moving Linear Regression R Squared Parameters
|
Parameter |
Description |
|
Color |
Line color. |
|
Weight |
Line thickness. |
|
MarkIt |
Opens Specify Conditions window. |
|
Offset |
Distance in bars between the current bar and the bar to use in the calculation. A positive offset uses future bars. A negative offset uses past bars. For example: 1 = next bar -2 = two bars back from current bar |
|
Period |
Number of bars in the lookback range. |
|
Price |
Price used to calculate study values. |
|
Display |
Line style. Values: •Line •Histogram |
|
ShareScale |
Determines whether sharing of the vertical scales between studies is accepted. •Auto = System determine whether sharing is feasible. •On = Scale is shared regardless of the functions and studies displayed. •Off = Scale is not shared. ShareScale must be On if study is overlaid on a study with multiple outputs. |