One of the powerful benefits in charting stocks is the vast array of indicators available today and what can be learned from their use. For those that follow me or view my charts posted on Chartly you will notice from time to time that I threw in something new.
I am a big believer in experimenting, likely goes back to my Technology background, as it helps to reinforce a view (or in many cases help to alter it) in a positive way.
Today I bring you the Regression Line. For an example, here is a Weekly chart on HFC (HollyFrontier Corp):
The Blue Line noted on the chart above is not a Trend Line drawn by hand. It is drawn by the charting software when you drag from the lower left to the lower right of the chart. I am using freestockcharts.com in this example and here is their definition:
Reg Line: Linear Regression trendline uses the least squares method to plot a straight line through prices so as to minimize the distances between the prices and the resulting trendline.