Linear Regression Band

Optuma Tools
1

Linear Regression Bands use a complex statistical calculation called Least Squares Method to calculate the line of best fit. Parallel lines are then added to either side of the central regression, based on the standard deviation of that line.

This is a companion discussion topic for the original entry at https://www.optuma.com/kb/optuma/tools/statistical/linear-regression-band
2

Here’s an example of the Linear Regression Band tool as the major US Indices all recently broke below their lower bands drawn from the October lows:

https://x.com/Optuma/status/1778389281448632652