Abbreviation: LinXYReg rsqrd
Category: Regression
Input Parameters:
| Name | Range | Default |
| X Axis | Close | |
| Y Axis | Close | |
| Regression Periods | Int >= 3 | 40 |
Calculation:
LinXYReg r(X, Y, n) * LinXYReg r(X, Y, n)
where
X = X Axis
Y = Y Axis
n = Regression Periods
LinXYReg r represents Linear XY Regression: Coefficient of Correlation (r)
Discussion:
Computes the coefficient of determination (r squared) for the linear regression line. Statistically, the coefficient of determination is simply the ratio of the explained variation to the total variation. In simpler terms, the coefficient of determination is simply the ratio of the variation between the regression line y value and the y mean to the variation of each y value to the y mean. Note that the coefficient of determination is simply the square of the coefficient of correlation.