I stumbled upon this indicator called I-regr through a friend of mine and i want to know if anyone else has ever used it and just how profitable it has been. please do share your experiences.
Hi Ramatsadoh,
I too stumbled upon it way back. The indicator starts off with a premise that whenever price deviates from the mean, it will return back to the mean. I had never done serious backtesting on it, so I can’t give the exact numbers. Sorry. It has its uses, I’d buy/sell at the extremes and set TP at the middle. It could get tricky if price started to make major trends though. Oh, and you may want to see how it works in a simulation first before using it. The indicator repaints heavily.
It analyzes price and time. Middle line is mean average outer lines are deviations. MT4 comes with a standard 2 outer lines plus median
But if you search indicators you can find LR tools with 4,5,6 outer lines. Here’s a short video of one way you can use it. Very Simple indicator works on any time frame, I use it on occasion when scalping. As always use a momentum indicator to confirm along with support and resistance especially on lower time frames. I found this video when I was checking out linear regression. I like it because it’s short and to the point. I’m not vouching for anything he may be selling just his explanation of one way to use linear regression tool. Hope this helps
Gp
thanks for the reply. please what do you mean by it repainting? please pardon my ignorance.
It shifts and changes to curve fit the price. That’s why the indicator seems to fit past price perfectly. This can be misleading. Try using it in MT4 strategy tester to see if you’re comfortable with its repainting issue. I personally prefer manually drawn channel like Gp053 has shown above.
Hi Ramatsadoh,
Here are some pictures to illustrate it. English is not my native language, so I think some points may have lost in my previous post 
The yellow is the indicator and the blue one is a manually drawn channel. According to the rule, we sell at the upper extreme, and set TP at the mean line.
As time progresses, price indeed goes down but TP is not hit. The indicator then repaints as price goes up. If we only use the indicator as a reference, we can be misleaded as we will only look for a place to sell. On the other hand, the manually drawn channel can show us that the trend has changed.
The change in trend will be much more clearly shown if we add a manually drawn support and resistance zone.
Indicators are great in that they minimize manual work, but I think we need to be able to do the manual work first before using it. Well, these are just my opinions. You may want to master drawing the channel manually, or you may spend more screen time watching how the indicator works in real time (who knows you’ll find a method to trade it, which I may have missed). I hope this helps.
Cheers,
+1. These are great words of advice. Thanks for putting the time into this one, great example.
Thank you so much Flows. this reply is so beautifully stated that i think i have all i need concerning this indicator. I may just have to look for another indicator to confirm trends. thanks a lot guys.
Hey, you’re most welcome. But you may not want to just take my words for it (since I’ve just learned forex for 4 months). You can give yourself the time to be familiar with how it works first before looking for another indicators. Chances are, you’ll probably find another indicator but then someone says it’s flawed. You’ll then search another one, but, again, someone says it’s flawed. And this may go on and on until you realize that no indicator is perfect, and you’ve been wasting your time looking for good indicators while you could’ve used the time to find the potentials the “bad” indicators actually posses (sorry for making assumptions, this was what I did :p). Nevertheless, good luck in your search.
Cheers,