R Squared is part of Standard Error Bands by Jon Anderson, Stocks and Commodities Mag. 09/1996. This study should be used with Standard Error PercentA, Linear Regression Slope and Bollinger Bands®. The user may change the input (close) and period lengths. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using R Squared
How To Access in MotiveWave
Go to the top menu, choose Study>Oscillators>Rsquared
or go to the top menu, choose Add Study, start typing in this study name until you see it appear in the list, click on the study name, click OK.
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//input = price, user defined, default is close
//period1 = user defined, default is 21
//period2 = user defined, default is 3
//index = current bar number
r = newCoeffR(index, period1, input); sqR = r * r; Plot: avSqR = sma(index, period2, sqR);