Charting and Studies User Guide - CQG.com

Moving Linear Regression R Squared (MLRR2)
Plots the square of the correlation coefficient based on the MLR for the currently displayed
chart.
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This is the measure of the degree to which two variables are linearly related. The study
computes between 1 and zero with meaning the correlation is absolute within the trend and
zero that there is either no trend or there is a reverse correlation, e.g. a sharp change in trend.
The use of this study within Congestion Count is a useful way of identifying a sideways pattern
quickly. You then can use another indicator to signal the breakout and its direction. The set up
is as follows. Congestion Count records a value of 10 or higher. This means that the last 10
bars have touched each other’s range on a consecutive basis. MLR Squared records a value
below 10. The breakout occurs when price closes outside of the 3rd deviation of the Volatility
Time Band.
Charting and Studies User Guide