8/8/22, 7:39 AM Linear Regression Indicator - Fidelity

Linear Regression
Trend
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Description
The Linear Regression Indicator plots the ending value of a Linear Regression Line
for a specified number of bars; showing, statistically, where the price is expected to
be. For example, a 20 period Linear Regression Indicator will equal the ending value
of a Linear Regression line that covers 20 bars.

How this indicator works

The interpretation of the Linear Regression Indicator is similar to that of a moving
average although it does have an advantage when compared to a moving
average.
Instead of plotting an average of past price action, it is plotting where a Linear
Regression Line would expect the price to be, making the Linear Regression
Indicator more responsive than a moving average.

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8/8/22, 7:39 AM Linear Regression Indicator - Fidelity

Calculation
Each point in the Linear Regression Indicator is simply the end-point of an n-period
Linear Regression trendline.

Related Indicators
Simple Moving Average (SMA)
SMA is the easiest moving average to construct. It is simply the average price over the
specified period.

Technical analysis focuses on market action — specifically, volume and price. Technical analysis is only one approach
to analyzing stocks. When considering which stocks to buy or sell, you should use the approach that you're most
comfortable with. As with all your investments, you must make your own determination as to whether an investment
in any particular security or securities is right for you based on your investment objectives, risk tolerance, and financial
situation. Past performance is no guarantee of future results.

676794.3.0

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Disclosures
This is for persons in the US only.

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