09 Chande Forecast Oscillator (cfo)
CFO calculates the percentage difference between the current price and the Time Series Forecast (the endpoint of a linear regression line). 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 CFO is accompained with a signal lines, which 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.
Figure 8.15: Chande Forecast Oscillator