Differences

This shows you the differences between two versions of the page.

--- technical_indicators:slope [2019/09/07 00:30]
betseyp [Overbought in a Downtrend]
+++ technical_indicators:slope [2021/06/17 16:02] (current)
betseyp [Calculation]
@@ Line 7: / Line 7: @@
 ===== Calculation =====
-Slope is based on a linear regression (line of best fit). Even though the formula for a linear regression is beyond the scope of this article, a linear regression can be shown using the Raff Regression Channel in SharpCharts. This indicator features a linear regression in the middle with equidistant outer trend lines. Slope equals the rise-over-run for the linear regression. Rise refers to the price change. Run refers to the timeframe. A 20-day Slope would be the rise-over-run of a 20-day linear regression. If the rise is 4 points and the run is two days, then the slope would be 2 (4/2 = 2). If the rise is -6 points and the run is 2, then the slope would be -3 (6/2 = 3). In general, an advancing period has a positive slope and a declining period has a negative slope. The steepness depends on the sharpness of the advance or decline.
+Slope is based on a linear regression (line of best fit). Even though the formula for a linear regression is beyond the scope of this article, a linear regression can be shown using the Raff Regression Channel in SharpCharts. This indicator features a linear regression in the middle with equidistant outer trend lines. Slope equals the rise-over-run for the linear regression. Rise refers to the price change. Run refers to the timeframe. A 20-day Slope would be the rise-over-run of a 20-day linear regression. If the rise is 4 points and the run is two days, then the slope would be 2 (4/2 = 2). If the rise is -6 points and the run is 2, then the slope would be -3 (-6/2 = -3). In general, an advancing period has a positive slope and a declining period has a negative slope. The steepness depends on the sharpness of the advance or decline.
 {{:technical_indicators:slope:slop-1-spyintro.png|Slope - Chart 1}}