MACD Built from Linear Regression Moving Averages

Summary

This document describes a MACD variant in which the fast and slow moving averages are calculated using linear regression rather than a conventional moving-average method. The difference between those two LSMA series forms the MACD value, while a separate signal line is smoothed according to a selectable method. The indicator also allows the user to choose the price input used for the signal calculation.

Its listed settings are the fast LSMA period, slow LSMA period, signal period, signal smoothing method, and applied price. These parameters define how the indicator is constructed, but the document gives no trading rules for interpreting crosses or values, and no chart examples, backtest, or comparative results. It therefore explains the indicator’s configurable components without showing whether this version improves signal quality or how it behaves across markets and time frames.

Key ideas

• The indicator uses linear regression moving averages for its fast and slow MACD inputs.
• A signal line is calculated from the resulting MACD series.
• The signal line has a configurable smoothing method and period.
• The applied price for the signal calculation is selectable.
• The document does not provide trading rules or performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.