1. First a Line of Best Fit Formula is generated.
A line of best fit (or "trend" line) is a straight line that best represents the data on a scatter plot. This line may pass through some of the points, none of the points, or all of the points.
2. The R-squared is calculated to see how well the best fit formula actually fits the ETF Price data.
The table is a calculation of the 14 period weekly AGQ (silver ETF) R-squared. The result is the same as appears on the Think or Swim Platform. The Weekly AGQ closes from the past 14 weeks is 81.23% correlated with the line of best fit. A rising R-squared that goes over 70% is a nice trend...
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