RSquared is the Correlation Coefficient from Linear Regression. It is used to determine how much of the price action over the specified period can be explained by the regression line, and how much should be attributes to random noise. RSquared ranges from 0 to 1.The higher RSquared is to one, the closer prices have fit to the linear regression line. During strong trends, RSquared will remain above 0.5 for an extended period of time. |