Linear Regression Slope for Metatrader 4 reveals the trend and displays the slope of the linear regression indicator in the bottom window of the trading platform.
Buying and selling with this indicator is easy to understand and works as follows:
- A buy signal occurs when the indicator turns back above the 0.00 neutral level.
- A sell signal occurs when the indicator turns back below the 0.00 neutral level.
The Linear Regression Slope indicator can be used for trade entries and exits or as a trend confirmation tool for your own trading strategy or system.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “LinearRegSlope_v1.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The picture below shows the Linear Regression Slope 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 when trading with the Linear Regression Slope 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: Slope
Does the indicator repaint? No.
MT4 Scalping Strategy Using Linear Regression Slope and Winner Trend Forex Bars Indicators
This MT4 scalping strategy combines the momentum signals of the Linear Regression Slope Forex Indicator with the trend-confirming signals of the Winner Trend Forex Bars Indicator.
Designed for short-term scalping, the strategy works best on 1-minute to 5-minute charts.
It identifies quick trade opportunities by confirming the momentum direction with trend strength.
The Linear Regression Slope indicator generates a buy signal when the slope moves back above zero and a sell signal when it moves back below zero.
The Winner Trend Forex Bars indicate bullish trends with green histogram bars and bearish trends with red histogram bars.
The take profit targets are set between 5–16 pips for fast scalping.
Buy Entry Rules
- Wait for the Linear Regression Slope to move back above zero, signaling a buy opportunity.
- Confirm the trend with green histogram bars on the Winner Trend Forex Bars indicator.
- Enter a buy trade at the market price once both conditions are met.
- Set a stop loss below the recent swing low.
- Set a take profit for 5–16 pips or near the next resistance level.
Sell Entry Rules
- Wait for the Linear Regression Slope to move back below zero, signaling a sell opportunity.
- Confirm the trend with red histogram bars on the Winner Trend Forex Bars indicator.
- Enter a sell trade at the market price once both conditions are met.
- Set a stop loss above the recent swing high.
- Set a take profit for 5–16 pips or near the next support level.
Advantages
- Combines momentum and trend confirmation for higher accuracy.
- Works effectively on very short timeframes, ideal for scalping.
- Visual histogram and slope signals are easy to interpret.
- Suitable for various currency pairs, including EUR/JPY, EUR/USD, USD/CAD, and NZD/USD.
Drawbacks
- Signals may lag slightly during very fast market movements, leading to delayed entries.
- Frequent trading can be mentally demanding and require high concentration.
- Scalping profits are small, so multiple successful trades are needed to accumulate gains.
- High-frequency trading can increase exposure to slippage and spreads, especially during volatile sessions.
- The strategy may produce false signals during low liquidity periods or when the market is consolidating.
Case Study 1: AUD/JPY on 1-Minute Chart
On the AUD/JPY 1-minute chart, the Linear Regression Slope moved back above zero, signaling a buy entry.
The Winner Trend Forex Bars displayed green histogram bars, confirming the bullish trend.
The trade was entered at 89.50, with a stop loss at 89.45 and a take profit at 89.60, achieving a 10-pip gain in 5 minutes.
Case Study 2: USD/CAD on 5-Minute Chart
On the USD/CAD 5-minute chart, the Linear Regression Slope moved back below zero, signaling a sell entry.
The Winner Trend Forex Bars showed red histogram bars, confirming the bearish trend.
The trade was entered at 1.3500, with a stop loss at 1.3510 and a take profit at 1.3490, netting 10 pips in 8 minutes.
Strategy Tips
- Always wait for both momentum and trend confirmation before entering trades.
- Use recent swing highs and lows to set stop loss and take profit levels accurately.
- Adjust take profit targets between 5–16 pips depending on market volatility.
Download Now
Download the “LinearRegSlope_v1.mq4” indicator for Metatrader 4
