R-Squared

R-Squared determines the correlation between the close and the Linear Regression Trendline.

R-Squared

R-Squared determines the correlation between the close and the Linear Regression Trendline.

 


R-Squared Formula

Application of R-Squared

The R-Squared indicator varies from 1 (fully correlated) to 0 (no correlation). R-Squared can be used to confirm the strength of the trend indicated by other indicators (e.g. RSI, Linear Regression Slope). High R-Squared values confirm trends while low R-Squared values indicate a possible turnaround. 



R-Squared determines the correlation between the close and the linear regression trendline.

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