If we are going to measure the relationship that exists between two or more data in the Forex, then we can use this measurement to the analysis of linear regression. The goal of linear regression is to show the relationship between these two values through a straight line that describes the data and then show how the values that we want to go to figure moves around this line.

One of the most popular methods for using the linear regression is undoubtedly that of least squares. Taking the sum of squared vertical deviations from each data point for each of the points that lie below the regression line, is the best way to calculate the value of certain data. Vertical deviation of

The line can be regarded as a sort of "balance" of the price. In this case fluctuations up or down the price line can make us see how the sellers or the buyers are too many and in excess of current market conditions.

We can also see other uses of the regression line, such as that of being a useful tool to predict the price. The line itself can be regarded as a forecast of price, so we can make exchanges following his direction. As a means of forecasting the price we have is much more effective when we use it for long periods of time.

In any case, the regression line should be used carefully, since there may be considerable loss of money due to price fluctuations. Therefore, you can remedy the problem and create a channel, using this line and two parallel lines, one above and one below it