Linear Regression Angle (LRA) Indicator
The Trend Steepness Gauge That Speaks in Degrees
Why settle for a plain slope when you can turn it into an angle everyone instinctively understands? The Linear Regression Angle (LRA) takes the slope from a least-squares regression line over the last N bars and converts it into degrees. A gentle +8° feels like a lazy uphill stroll, while +35° screams rocket launch. It's the intuitive way to measure not just trend direction, but how urgently price is moving – turning cold math into a hot momentum read.
The Core Math – Simple Conversion
One breath, here's how it works:
- Fit a least-squares regression line over N bars (price vs bar index).
- Grab the slope m (price change per bar).
- Convert to angle: θ = arctan(m) × (180/π).
- Positive θ = uptrend, negative = downtrend, near zero = flat.
No extra fluff – just turning raw velocity into human-friendly degrees.
Some scripts normalize further (e.g., per bar height), but classic LRA is pure arctan.
Decoding the Angle – What Degrees Really Mean
Easy-to-feel ranges:
- > +25°: Explosive uptrend – ride it hard with trailing stops.
- +10° to +25°: Building bullish strength – buy pullbacks or breakouts.
- -10° to +10°: Sideways drift – mean-reversion territory or sit tight.
- -25° to -10°: Growing bearish momentum – probe shorts carefully.
- < -25°: Steep downtrend – short rallies, respect the drop.
Steeper angles signal faster, more convincing moves – great for profits, risky for stops.
Tuning the Look-Back – Parameter Personality
N changes everything:
- Short (10–20): Super responsive – perfect for day trading liquid assets, but noisy.
- Medium (30–60): Balanced swing feel – smooth yet timely turns.
- Long (80–200): Calm macro view – filters noise on higher timeframes.
- Extra smoothing: Apply a short MA to LRA values for even cleaner reads (great on volatile crypto).
Add a dead-zone filter (ignore |angle| < 5°) to skip dull chop.
Pro Trading Playbooks
Ways traders put LRA to work:
- Trend filter: Only go long when LRA > +10° (and rising); short when < -10°.
- Momentum grading: Steeper angles = higher conviction – larger positions or tighter trails.
- Divergence hunt: Price new high + falling LRA → weakening bulls, prep exits.
- Regime switch: LRA crossing zero with volume spike → early trend change alert.
Pair with volume/OBV (real participation?) and RSI/CMO (divergence?) for killer confirmation.
The Good, the Tricky, and the Explosive
Strengths
- Intuitive steepness read – everyone gets degrees instantly.
- Universal – works on any asset, any timeframe.
- Filters flat wander better than plain price slope.
Limitations
- N choice dramatically alters behavior – test thoroughly.
- Sudden gaps spike angle temporarily – can fake signals.
- Still lags sharp reversals (needs bars to turn).
Your LRA Launch Checklist
- Pick timeframe and starting N (match your holding period).
- Backtest angle thresholds per asset – what screams 'trend' for each?
- Require confluence: price structure + LRA + volume/momentum.
- Scale risk with steepness – bigger angles often mean bigger volatility.
- Re-calibrate when market regime shifts – volatility changes everything.
Key Takeaways
LRA converts regression slope into intuitive degrees – direction + urgency in one number.
Steeper angles = stronger, faster trends; flat = chop or transition.
Great momentum grader, trend filter, and divergence spotter.
Tune N carefully, demand confirmation, respect gaps.
Use LRA to feel the market's incline – trade the rockets, fade the flats, and always manage risk. Stay angled and trade strong!
Linear Regression Angle (LRA) Indicator
The Trend Steepness Gauge That Speaks in Degrees
Why settle for a plain slope when you can turn it into an angle everyone instinctively understands? The Linear Regression Angle (LRA) takes the slope from a least-squares regression line over the last N bars and converts it into degrees. A gentle +8° feels like a lazy uphill stroll, while +35° screams rocket launch. It's the intuitive way to measure not just trend direction, but how urgently price is moving – turning cold math into a hot momentum read.
Table of Contents
The Core Math – Simple Conversion
One breath, here's how it works:
- Fit a least-squares regression line over N bars (price vs bar index).
- Grab the slope m (price change per bar).
- Convert to angle: θ = arctan(m) × (180/π).
- Positive θ = uptrend, negative = downtrend, near zero = flat.
No extra fluff – just turning raw velocity into human-friendly degrees.
Some scripts normalize further (e.g., per bar height), but classic LRA is pure arctan.
Decoding the Angle – What Degrees Really Mean
Easy-to-feel ranges:
- > +25°: Explosive uptrend – ride it hard with trailing stops.
- +10° to +25°: Building bullish strength – buy pullbacks or breakouts.
- -10° to +10°: Sideways drift – mean-reversion territory or sit tight.
- -25° to -10°: Growing bearish momentum – probe shorts carefully.
- < -25°: Steep downtrend – short rallies, respect the drop.
Steeper angles signal faster, more convincing moves – great for profits, risky for stops.
Tuning the Look-Back – Parameter Personality
N changes everything:
- Short (10–20): Super responsive – perfect for day trading liquid assets, but noisy.
- Medium (30–60): Balanced swing feel – smooth yet timely turns.
- Long (80–200): Calm macro view – filters noise on higher timeframes.
- Extra smoothing: Apply a short MA to LRA values for even cleaner reads (great on volatile crypto).
Add a dead-zone filter (ignore |angle| < 5°) to skip dull chop.
Pro Trading Playbooks
Ways traders put LRA to work:
- Trend filter: Only go long when LRA > +10° (and rising); short when < -10°.
- Momentum grading: Steeper angles = higher conviction – larger positions or tighter trails.
- Divergence hunt: Price new high + falling LRA → weakening bulls, prep exits.
- Regime switch: LRA crossing zero with volume spike → early trend change alert.
Pair with volume/OBV (real participation?) and RSI/CMO (divergence?) for killer confirmation.
The Good, the Tricky, and the Explosive
Strengths
- Intuitive steepness read – everyone gets degrees instantly.
- Universal – works on any asset, any timeframe.
- Filters flat wander better than plain price slope.
Limitations
- N choice dramatically alters behavior – test thoroughly.
- Sudden gaps spike angle temporarily – can fake signals.
- Still lags sharp reversals (needs bars to turn).
Your LRA Launch Checklist
- Pick timeframe and starting N (match your holding period).
- Backtest angle thresholds per asset – what screams 'trend' for each?
- Require confluence: price structure + LRA + volume/momentum.
- Scale risk with steepness – bigger angles often mean bigger volatility.
- Re-calibrate when market regime shifts – volatility changes everything.
Key Takeaways
LRA converts regression slope into intuitive degrees – direction + urgency in one number.
Steeper angles = stronger, faster trends; flat = chop or transition.
Great momentum grader, trend filter, and divergence spotter.
Tune N carefully, demand confirmation, respect gaps.
Use LRA to feel the market's incline – trade the rockets, fade the flats, and always manage risk. Stay angled and trade strong!
Related Terms
Apply This Knowledge
Ready to put Linear Regression Angle (LRA) Indicator into practice? Use our tools to analyze your portfolio and explore market opportunities.
This content is also available on our main website for public access.