Forecast Oscillator : The Concept_ Tushar Chande

The Forecast Oscillator was developed by Tushar Chande. The Forecast Oscillator is an extension of the linear regression
based indicators, by definition. It is a percentage comparison of the price of an issue and the price as indicated by the Time
Series Forecast Oscillator. The oscillator is above zero when the forecast price is greater than the actual price. Conversely,
its less than zero if its below. When the forecast price and the actual price are the same the oscillator would plot as zero.
Prices that are persistently below the forecast price suggest lower prices ahead. Actual prices that are persistently above
the forecast price suggest higher prices ahead. The Forecast Oscillator is in simple words, a comparison (in percentage) of
the issue price and the price as seen by the Time Series Forecast Oscillator. Its an extension of the indicators which are
based on linear regression. The oscillator is above the zero point if the forecast price is higher than the current price. On
the contrary, if its below it turns out to be less than zero. When the forecast price and the current price are equal, the
oscillator makes a zero. Current prices that are constantly over the forecast price suggest higher prices ahead and prices
that are constantly under the forecast price suggest lower prices ahead. It is calculated as follows: (Close Previous Time
Series Forecast) * 100 / (Close) The Forecast Oscillator is a variant of the Time Series Forecast. It calculates the
percentage
difference
between the
time
series
forecast
and
the
actual price.
See
more
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