Linear Regression Intercept

Linear Regression Intercept

The Linear Regression Intercept (LR-I) uses the ordinary least squares method to derive a linear function which plots a straight line through prices so as to minimize the distances between the prices and the resulting trendline. The LR-I is a moving linear regression which plots the y-axis intercept for the derived trend line at each period. The intercept is the origination point of the regression and thereby appears to be an offset moving average.