The Forecast Oscillator is an extension of the linear regression based indicators made popular by Tushar Chande. The Forecast Oscillator plots the percentage difference between the forecast price (generated by an x-period linear regression line) and the actual price. The Signal Line is a three-day moving average of the Forecast Oscillator to generate early warnings of changes in trend. When the oscillator crosses below the signal line, lower prices are suggested. When the oscillator crosses above the signal line, higher prices are suggested. Two hour mean signal line results were compared with end day results. These two parameters combined with a decreased volume appear promising for early prediction of culmination of TNA downlegs.
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