The Forecast Oscillator calculates the percentage difference between the actual price and the Time Series Forecast (the endpoint of a linear regression line). When the price and the forecast are equal, the Oscillator is zero. When the price is greater than the forecast, the Oscillator is greater than zero. When the price is less than the forecast, the Oscillator is less than zero.
If the Forecast Oscillator stays below zero, it indicates that prices are about to fall, and if the Oscillator stays above zero, it indicates that prices are about to rise. The signal is an exponential moving average of the Forecast Oscillator. When the Oscillator crosses above/below the signal line, then prices are expected to rise/fall.
The Forecast Oscillator was developed by Tushar S. Chande.
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