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rsquared Indicator

rsquared is defined as a statistical measure of how well a regression line approximates real data points; an r-squared of 1.0 (100%) indicates a perfect fit.  The closer rsquared is to one, the closer prices have fit to the linear regression line.  rsquared is used for confirmation of a trend.  Use this indicator in conjunction with momemtum indicators.  If the momemtum indicator indicates that an item is in overbought or oversold territory, use rsquared to determine if the trend is in place, if not, a position contrary to the current condition may be warranted.

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rsquared Developer Help