Chande Forecast Oscillator (CFO)

The Chande Forecast Oscillator plots the percentage difference between the closing price and the n-period linear regression forecasted price. The oscillator is above zero when the forecast price is greater than the closing price and less than zero if it is below.

Configuration Options

• Field: Price or combination of prices to use as the base for average calculations. Possible values include:
  • Open
  • High
  • Low
  • Close
  • Adjusted Close
  • HL/2 \( \left ( \frac{High + Low}{2} \right ) \)
  • HLC/3 \( \left ( \frac{High + Low + Close}{3} \right ) \)
  • HLCC/4 \( \left ( \frac{High + Low + Close + Close}{4} \right ) \)
  • OHLC/4 \( \left ( \frac{Open + High + Low + Close}{4} \right ) \)
• Period: Number of bars to use in the calculations.
• Color Selectors: Colors to use for graph elements.
• Display Axis Label: Whether to display the most recent value on the Y axis.

Formula

\[CFO_{i} = \frac{(Close_{i} - Linear\;Regression)\times 100}{Close_{i}} \]

where linear regresion is calcualted as

\[slope\;=\;m\;=\;\frac{\sum_{i=1}^{n}(x_{i} - \bar{x})(y_{i} - \bar{y})}{\sum_{i=1}^{n}(x_{i} - \bar{x})^{2}}\]

\[intercept\;=\;b\;=\;\bar{y} - m\bar{x}\]