Linear regression

As a trend trader, one of the real challenges is to identify and stay in a trend. Trend retracements are frequent annoyances in trend trading that can lead to substantial losses. In short, identifying trends is extremely important. Of course, in a high volume markets like the ES e-mini identifying trends and retracements can be dicey business and no simple matter. To be sure, when the market is in a high volatility state, trend trading can be very difficult and challenging.

Linear regression is a mathematical tool for analysis of stock performance during a defined period of time. Using statistics, linear regression is plotted mathematically to determine the exact middle or median of the price of a stock over time. The linear regression chart is a technical indicator of stock performance that uses a trend line that represents a “best fit” for the stock’s mid-price over time. The trend lines of median stock performance are also referred to as linear regression lines.

Eventually, once the program has identified what it considers a highly profitable, high probability trading opportunity, it notifies you so that you can trade accordingly. Where can you find or download this particular program or software such as this one? Well, it is readily available online but definitely not free. This sort of technology has proven effective that is why it is growing in popularity amongst for a number of reasons.

Online stock trading is rapidly evolving since the time of its introduction in the country’s market. It was first adopted by National Stock Exchange and was subsequently adopted by other national and regional bourses in India. When you are trading online, it means that you have the luxury of being located anywhere in India or any other part of the world and trading in stocks via Internet.
Another point of attraction about online trading is the fact that trader are free to trade in almost every kind of security including IPOs, mutual funds and bonds.