R-squared (trend fit)
How well a straight line explains the last N prices, from 0 to 1.
Formula
R² = 1 − Σ residual² ÷ Σ (P − mean)², of the least-squares line against bar number
How to read it
Above 0.5 the price has moved roughly in a straight line — a trend; near 0 it has wandered.
How to use it
Separates a trend worth following from noise; read it with the slope.
Limitations
Not the portfolio R² against a benchmark, which is a different statistic with the same name.
In Kereon
Charts · Superchart. Default 25 bars; a line at 0.5.
Also called: r2 trend, coefficient of determination, trend strength.