R – Squared indicato

values close to 1.0 show perfect relation
values close to 0.0 show poor relation

See Metastock Help
To determine if the trend is statistically significant for a given x-period linear regression line,
plot the r-squared indicator and refer to the following table.  This table shows the values of
r-squared required for a 95% confidence level at various time periods.  If the r-squared value
is less than the critical values shown, you should assume that prices show no statistically
significant trend.
Number ofPeriods r-squaredCritical Value(95%confidence)
5                 0.77
10                0.40
14                0.27
20                0.20
25                0.16
30                0.13
50                0.08
60                0.06
120               0.03
You may even consider opening a short-term position opposite the prevailing trend when you
observe r-squared rounding off at extreme levels.  For example, if the slope is positive and
r-squared is above 0.80 and begins to turn down, you may consider selling or opening a short position.
There are numerous ways to use the linear regression outputs of r-squared and Slope in trading
systems.  For more detailed coverage, refer to the book The New Technical Trader by Tushar Chande
and Stanley Kroll.