Standard Error

Standard Error Interpretation:

The Standard Error indicator allows us to know if prices are close to the linear regression line or not. The closer they are, the more the trend is reliable. On the other hand, the further away they are the less reliable is the trend. This indicator is often used in relation to R2 so as to interpret trend reversals more easily.

We can observe that when the two indicators start from opposite levels and converge, there is usually a change of trend taking place - either a new phase of consolidation and/or possibly a phase of reversal.

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