Chande Forecast Oscillator

The Chande Forecast Oscillator is an indicator based on the linear regression: it draws the percentage difference existing between the expected price, through the linear regression, and the current price. When the oscillator is higher than zero the expected price is higher than the current price, otherwise the indicator takes negative values. Therefore, if the indicator is greater than zero, the presence of a bullish trend is assumed, whereas when the indicator is less than zero a bearish trend is expected. Its creator, Tushar Chande suggests tracing a moving average at x periods of the indicator: in this way signals of entry and exit are obtained with the crossing, up or down, between the indicator and its moving average.