Linear Regression is a forex technical indicator used in technical analysis by many traders. Linear Regression is a statistical data to predict future prices from past data, and is usually used when the price increase or decrease significantly.

Linear regression in the history of mathematics was first developed by Gauss that a mathematician in 1809. Then Gilbert Raff use this principle to trade shares for the first time. The concept of price inflation used to calculate the price of basic needs, it can be applied to measure the price trend based graphics.

Gilbert Raff said that he uses Regression Channel to calculate accurately the movement of stock prices, bonds, mutual funds and commodities.

The method used in linear regression is :
1. The movement of the indicator shows the trend of rising (bullish) or down (bearish).
2. If through the price it will form a new trend.

This indicator is very easy to use to measure the price trends. With the help of a MA line 1 then we can conclude that if the LR line through the price it will form a new trend.

The nature of this indicator is lagging or too late means that if this indicator is used alone then we do not know when prices will stop rising or falling. It’s recommended that you add the oscillator indicators such as RSI or stochastic to anticipate this.