The Regression Analysis v2.0 Indicator For MT4
Table Of Contents:
- The Regression Analysis v2.0 Indicator For MT4
- Advantages of using the Regression Analysis v2.0 Indicator For MT4
- Trading Idea
The Regression Analysis v2.0 Indicator For MT4 is a meta trader 4 indicator that does its analysis based on price statistics. It helps the trader see the big picture about what the market is actually doing by analyzing the varying prices of the instrument or trading asset and comparing them to the time it took them to change from price to price.
Advantages of using the Regression Analysis v2.0 Indicator For MT4
A lot of other trading strategies and analysis methods are restricted to specific currency pairs or trading assets. The beautiful thing about the Regression Analysis v2.0 Indicator For MT4 is that it based on general statistics and therefore is suited to all currency and trading asset types regardless of which ones they are.
Regression Analysis gives every trader who understands how to use it properly an edge over the markets. An edge would be defined as a profitable pattern that an individual trader adopts, which may or may not be a secret and may or may not be known by others. The trader using this edge adopts it, knowing that by trading that pattern, he or she would be very profitable in the long run. Every trader must usually have their own edge peculiar to them which tells them that they can make money if they continue to trade.otherwise in the long run, they will risk losing their accounts.
An important quality of the Regression Analysis v2.0 Indicator For MT4 is that it doesn't smoothen bars, doesn't work with the present price information and doesn't try to play any tricks on the trader. It, however, works by thoroughly analyzing all the records gathered over a specific length of time and then comparing all this data that it has analyzed to the time period through which they occurred. This then forms a relationship and this relationship becomes the basis through which the Regression Analysis v2.0 Indicator For MT4 views all the other data (in this case, prices) coming in at the exact moment it is doing the analysis.
All the analysis is done in a very fast and efficient manner such that the user never notices a lag and doesn't have to wait for the analysis to finish before a trade is conducted. In fact, the Regression Analysis v2.0 Indicator For MT4 does this analysis and re-calculation almost every second of the time that passes, constantly working under the hood to help the trader determine what the real trend behind the current move in price is.
The work that the Regression Analysis v2.0 Indicator For MT4 does is very important because it immediately helps the trader to determine the best fit between all the data prices being created per time and the time in which they are created. This in turn then shows the trader the direction of prices and the trader is able to tap into the current price movement, making trades only in the direction that best fits what the relationship between price and the data variables is at any moment in time.
Based on the way the Regression Analysis v2.0 Indicator For MT4 works on price streams, it is safe to say that the Regression Analysis v2.0 Indicator For MT4 tries to predict the future for the trader based on what its analyses and calculations are producing. This brief insight into the future can be very useful to the trader if it is properly exploited and will help the trader to see ahead of other traders and keep his trades in tune with the market movements.
Regression Analysis v2.0 Indicator For MT4 creates the best path for the price to follow in the future and this becomes the baseline for all the trades that Regression Trader will work with, betting that price will generally continue to move in that line of best fit drawn in by the Regression Analysis v2.0 Indicator For MT4. Most of the time, this can really help to keep a trader in profits as the trade they take is then aligned in the correct market directions.
The relationships usually found by the Regression Analysis v2.0 Indicator For MT4 is referred to by most traders as the trend. To a trader who is not using the indicator, it may be difficult to identify this trend as early as it starts but because of the predictive nature of the Regression Analysis v2.0 Indicator For MT4, traders can have an insight into what new trend is developing even before other traders become aware that it is there.
Signals produced by the Regression Analysis v2.0 Indicator For MT4 usually look like 3 lines drawn over a certain price distance. The middle line is said to have very magnetic properties and can be seen to attract price back to itself whenever price overshoots to either the upper or lower line. The line on top is used to mark the present and closest resistance area for price action at the moment.'
The lower line is used to identify the immediate and closest support area or level in price action. Coupling these 3 lines together can give traders the ability to see the unique way price is created as it bounces between the support and resistance on its way upwards, downwards or while it is ranging.
The Regression Analysis v2.0 Indicator For MT4 can also be used across multiple timeframes, using the much larger timeframes to finetune the smaller timeframes. Also, a trader can decide to superimpose more than one Regression Analysis v2.0 Indicator For MT4 on a single chart to get a broader view of what price action has been on that particular currency pair or trading asset.
One of the Regression Analysis v2.0 Indicator For MT4 can be given a wider range of price action for the larger trend picture while the second one can be given a smaller period of prices to analyze so that the trader can both identify larger trends and smaller trends in that currency pair.
The trader using the Regression Analysis v2.0 Indicator For MT4 can get into profitable trades by very fairly simple steps. The trader has to first look to see where the channel is pointing to as this may likely be the direction to which prices will be moving.
The trader can then wait for the price to fall to one of the other sides of the support or resistance. Statistically, once price does this, there is a high tendency for it to return back to the middle line. The trader can then follow it back.