This is the updated 1.2 version of the RSX (R-squared) Adaptive indicator for MT4 which was coded by Mladen.
This particular version includes (newer drop down box) Multi-timeframe + Interpolation, Alerts, Color Change Options and much more.
R-squared as explained by Mladen:
What Is R-squared?
R-squared is a statistical measure of how close the data are to the fitted regression line. It is also known as the coefficient of determination, or the coefficient of multiple determination for multiple regression.
The definition of R-squared is fairly straight-forward; it is the percentage of the response variable variation that is explained by a linear model. Or:
- R-squared = Explained variation / Total variation
- R-squared is always between 0 and 100%:
0% indicates that the model explains none of the variability of the response data around its mean.
100% indicates that the model explains all the variability of the response data around its mean.
In general, the higher the R-squared, the better the model fits your data.
In investing, R-squared is interpreted as the percentage of a fund or security's movements that can be explained by movements in a benchmark index. For example, an R-squared for a fixed-income security versus a bond index identifies the security's proportion of price movement that is predictable based on a price movement of the index. The same can be applied to a stock versus the S&P 500 index, or any other relevant index.
If you're looking for all of the other R-Squared Adaptive indicators for MT4, here is the full list: