Machine Learning Regression Trend Indicator MT4 - Free Download [TradingFinder]

The Machine Learning Regression Trend indicator operates based on the Random Sample Consensus (RANSAC) algorithm. This algorithm removes outlier data from the price set and then provides a more accurate linear model of the market trend.

Moreover, using this method helps identify the linear structure of price with higher precision.

Machine Learning Regression Trend Indicator Table

The general specifications of the Machine Learning Regression Trend Indicator are presented in the table below.

Machine Learning Regression Trend Indicator at a Glance

The Machine Learning Regression Trend indicator plays a multi-purpose role in the MetaTrader 4 platform.

On one hand, it can be used like a standard Linear Regression Channel indicator as support and resistance lines; on the other hand, it enables the estimation and forecasting of the upcoming market trend.

To display the trend, the indicator draws linear regression lines together with a margin of error on the chart. The blue area indicates the acceptable error range.

Indicator in an Uptrend

In an uptrend, the Machine Learning Regression Trend indicator displays the blue regression channel as the main path of price.

The consolidation of candles above the central line issues a buy signal, while the positive reaction to the lower band acts as dynamic support. Also, the distance of candles from the central line and their movement toward the upper band demonstrate the stronger momentum of the bullish wave.

Indicator in a Downtrend

In a downtrend, the indicator illustrates the overall market direction with a negative slope. The movement and consolidation of candles below the mid-band represent selling pressure and the continuation of the bearish flow.

Furthermore, the negative reaction of price to the top of the regression channel acts as resistance, strengthening the sell signal.

Machine Learning Regression Trend Settings

The image below shows the settings panel of the Machine Learning Regression Trend Indicator in the MetaTrader 4 platform:

• Channel length (minval=5): Displays channel length (minimum value = 5)
• Channel Width, minval=0: Channel width (minimum value = 0)
• Source of Data: Source of data for calculations
• Minimum Inliers, minval=1: Minimum number of inlier data with a minimum of 1
• Allowed Error: Tolerance threshold for detection
• minval=0, step=0.5: Minimum value = 0, with change step = 0.5
• Maximum Iteration Steps: Maximum number of algorithm iteration steps
• Line Color: Show line color
• Show Margin: Display margin of the channel
• Color of channel: Show channel color
• Transparency of margin (0-255): Margin transparency (from 0 to 255)
• Show Channel: Display channel
• Color of channel: Show channel color
• Transparency of channel (0-255): Channel transparency (from 0 to 255)
• Show Inliers: Display inlier data
• Inliers color: Display Inliers color
• Show Outliers: Display outliers
• Outliers color: Display outliers color

Conclusion

The Machine Learning Regression Trend Indicator, using the RANSAC algorithm, removes outliers and provides a clearer visualization of the real market trend.

This trading tool identifies support in uptrends and resistance/selling pressure in downtrends. Moreover, entry zones for buy and sell trades are issued based on price reaction to the regression channel.