Description:
One of the most popular and effective oscillators is the Forecast Oscillator, developed by Tushar Chande to identify market trends and provide insights into price movements.
Input Parameters:
- Length: Number of periods used in the calculation.
- Price Source: The specific data points (such as open, high, low, or close) from each candle in a financial chart that an indicator uses for mathematical computations, enabling the calculation of metrics like the average over a specified period.
Use Cases:
- Identifying Trend Reversals: The Forecast Oscillator can identify trend reversals by looking for divergences between the oscillator and the asset price.
- Overbought and Oversold Conditions: The Forecast Oscillator can also be used to identify overbought and oversold conditions. When the oscillator reaches extreme values, it indicates that the asset is overbought or oversold and is due for a price reversal. Traders can use these signals to enter or exit positions and take profits.
- Confirming Price Movements: Traders can also use the Forecast Oscillator to confirm price movements. When the oscillator and the price move in the same direction, it confirms the trend and indicates that the price movement is likely to continue. Conversely, when the oscillator and the price move in opposite directions, the trend loses momentum and is expected to reverse.
This feature can be used in:
- Market Scanner
- Strategy Tester
- Multi-Factor Alerts
- Smart Checklist
Do you want to learn more? Check out our Learning Center Article.
May 13, 2024