Linear Regression R-Squared
Linear Regression R-Squared measures how well price fits a straight line on a 0-1 scale. Above 0.7 = price is trending cleanly; below 0.5 = noise dominates. - Use as a trend-strength filter for any regression-based signal. - Drops below 0.5 during chop and during the early bars of a new trend — be wary. - Sustained readings above 0.7 are when trend systems make their money.