The Linear Regression Forex indicator for mt4 (Metatrader 4) draws the linear regression channel on the chart and reveals the prevailing market trend.
The indicator gets displayed in the main MT4 chart window and consists of the 3 upper gray colored channel lines, 3 lower gray colored channel lines, and the middle yellow colored linear regression line.
Buy & Sell Trade Example
- Open a buy trade when the price touches the lower gray channel line and the Linear Regression channel is sloping up.
- Open a sell trade when the price touches the upper gray channel line and the Linear Regression channel is sloping down.
- Take profit at the opposite channel line.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “Linear_Regression.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The example chart below displays the Linear Regression mt4 indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy to trade with the Linear Regression indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Regression Channel
Does the indicator repaint? No.
MT4 Intraday Strategy Using Linear Regression Forex and X Super Trend Candles Indicators
This MT4 intraday strategy combines the trend-following signals of the Linear Regression Forex Indicator with the precise entry signals from the X Super Trend Candles Forex Indicator.
The strategy is designed for traders looking to capture intraday price movements on active currency pairs.
It works best on 5-minute to 15-minute charts.
The Linear Regression Forex indicator identifies the overall trend: an upward-sloping channel with price above the orange midline indicates a bullish trend, while a downward-sloping channel with price below the midline indicates a bearish trend.
The X Super Trend Candles provide trade entries: green candles indicate buy signals and red candles indicate sell signals.
Buy Entry Rules
- Confirm the Linear Regression Forex Indicator shows an upward-sloping channel with price above the orange midline, indicating a bullish trend.
- Wait for a green candle on the X Super Trend Candles indicator, signaling a buy entry.
- Enter a buy trade at the market price once both conditions are met.
- Set a stop loss below the recent swing low or the lower boundary of the regression channel.
- Set a take profit for 10–35 pips or near the next resistance level, depending on market volatility.
Sell Entry Rules
- Confirm the Linear Regression Forex Indicator shows a downward-sloping channel with price below the orange midline, indicating a bearish trend.
- Wait for a red candle on the X Super Trend Candles indicator, signaling a sell entry.
- Enter a sell trade at the market price once both conditions are met.
- Set a stop loss above the recent swing high or the upper boundary of the regression channel.
- Set a take profit for 10–35 pips or near the next support level, depending on market volatility.
Advantages
- Combines trend direction with precise entry signals for higher accuracy.
- Works effectively on intraday charts, allowing multiple trading opportunities per session.
- Clear visual indicators reduce guesswork and simplify decision-making.
Drawbacks
- Requires constant monitoring during intraday sessions for timely entries.
- May underperform during extended sideways market periods.
Case Study 1: EUR/JPY on 5-Minute Chart
On the EUR/JPY 5-minute chart, the Linear Regression Forex Indicator showed an upward-sloping channel with price above the orange midline, indicating a bullish trend.
A green candle appeared on the X Super Trend Candles indicator, confirming the buy entry.
The trade was entered at 142.50, with a stop loss at 142.40 and a take profit at 142.65.
The trade closed successfully with a 15-pip gain within 20 minutes.
Case Study 2: AUD/USD on 15-Minute Chart
On the AUD/USD 15-minute chart, the Linear Regression Forex Indicator displayed a downward-sloping channel with price below the orange midline, signaling a bearish trend.
A red candle on the X Super Trend Candles indicator confirmed the sell entry.
The trade was entered at 0.6750, with a stop loss at 0.6760 and a take profit at 0.6735.
The trade reached the take profit target, netting 15 pips within 30 minutes.
Strategy Tips
- Always confirm the trend with the Linear Regression Forex Indicator before taking entries from X Super Trend Candles.
- Use recent swing highs and lows or regression channel boundaries to set stop loss and take profit levels accurately.
- Adjust the take profit based on currency pair volatility and intraday market conditions.
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Download the “Linear_Regression.mq4” indicator for Metatrader 4
