Linear Regression Angle

Overview

The Linear Regression Angle indicator transforms the mathematical slope of a regression line into a degree measurement that traders can intuitively understand and visualize. While the standard Linear Regression Slope provides raw rate-of-change values, the Angle variant converts these into degrees, making it easier to compare trend strength across different securities regardless of their price ranges. This conversion addresses a fundamental challenge in technical analysis - a $100 stock moving $1 per day has the same percentage change as a $10 stock moving $0.10, but their raw slopes differ dramatically. By normalizing to angles, traders can instantly recognize that a 45-degree angle represents a strong trend regardless of the underlying security's price.

The indicator excels at identifying trend births and measuring their progression through time. Unlike lagging indicators that confirm trends after significant moves, the Linear Regression Angle detects subtle shifts in momentum as the angle changes. A gradually steepening angle warns of accelerating trends, while a flattening angle signals potential exhaustion before price action confirms the change. The degree measurement also provides clear thresholds - angles above 30 degrees typically indicate strong trends worth following, while angles approaching zero suggest consolidation phases. However, traders must understand that the angle is relative and can be affected by chart scaling. The indicator normalizes based on historical price ranges, making the angles comparable within a security's own history rather than absolute mathematical angles.

Interpretation & Trading Signals

Example Usage

Code examples will be available once the Rust implementation is complete.