Introduction to MQL5

RSI vs Linear Regression: Analyzing Forex Trading

5 min read

RSI (Relative Strength Index) and linear regression analysis are two commonly used technical analysis tools used in Forex trading. RSI is a momentum indicator that compares recent gains and losses over a certain period of time to measure a security’s speed and change of price movements. Meanwhile, linear regression analysis is a statistical technique used to determine the amount and direction of the relationship between two variables. It is often used in Forex to identify trends and detect potential trades. Both RSI and linear regression analysis can be used in combination for traders to identify potential trend reversals or points of entry and exit. However, it is important to note that these techniques are not always that accurate and should be used with caution.