Linear Regression Line Tool
Posted: Wed Sep 30, 2015 10:31 am
We have an requirement wherein we need "Linear Regression Tool" in TeeChart. The detailed explanation can be found below.
Linear Regression Line - Interpretation
A Linear Regression Line is a straight line that best fits the prices between a starting price point and an ending price point. A "best fit" means that a line is constructed where there is the least amount of space between the price points and the actual Linear Regression Line. A Linear Regression trendline is simply a trendline drawn between two points using the least squares fit method. The trendline is displayed in the exact middle of the prices. If you think of this trendline as the "equilibrium" price, any move above or below the trendline indicates overzealous buyers or sellers.
Formula for the linear regression line can be found on below link:
https://www.easycalculation.com/statist ... ession.php
- Linear Regression Line (while drawing)
- Linear Regression Line.png (22.74 KiB) Viewed 5937 times
- Linear Regression Line (after drawing)
- Linear Regression Line 2.png (12.64 KiB) Viewed 5929 times
A Linear Regression Line is a straight line that best fits the prices between a starting price point and an ending price point. A "best fit" means that a line is constructed where there is the least amount of space between the price points and the actual Linear Regression Line. A Linear Regression trendline is simply a trendline drawn between two points using the least squares fit method. The trendline is displayed in the exact middle of the prices. If you think of this trendline as the "equilibrium" price, any move above or below the trendline indicates overzealous buyers or sellers.
Formula for the linear regression line can be found on below link:
https://www.easycalculation.com/statist ... ession.php