1. Strategy in trendy market.
Combine the R-Squared with the Linear Regression Slope.
✔The R-Squared will determine how strong the trend is.
✔The Linear Regression Slope will determine the direction of the trend. Trade in the direction of trend using the Linear Regression Slope. The R-Squared should remain above 80. (You may find other numbers more confident)
2. Strategy in not trendy markets.
Combines the R-Squared with Stochastic or any other indicator which gives you over-bought and over-sold signals.
✔Signals will be produced in accordance with stochastic readings between the overbought and the oversold levels. The R-Squared should remain at low levels.