Oscillator - Forecast Oscillator 10/19/00 03:10:26 PM PST...

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Unformatted text preview: Forecast Oscillator 10/19/00 03:10:26 PM PST The forecast oscillator uses linear regression to predict price and then compares the prediction to the actual price. Security: $compq Position: N/A One technical analysis school of thought approaches price action in a statistical fashion. The market appears to behave in a random fashion and charts built using random number generators can have features that appear to be tops and bottoms and to some extent trends. If the market is truly random then a statistical approach would be an objective way to interpret price action. But some would argue that patterns such as head and shoulders are not a random event and have predictive value. The forecast oscillator attempts to predict upcoming price action by comparing the results of a linear regression trendline to the actual price for that day. Positive values of the oscillator occur when the forecast price is above the actual price and negative values when the forecast price is below. If prices are consistently below the forecast the actual price and negative values when the forecast price is below....
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This note was uploaded on 04/14/2010 for the course FINANCE fnce 305 taught by Professor Proftujun during the Spring '10 term at Singapore Management.

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Oscillator - Forecast Oscillator 10/19/00 03:10:26 PM PST...

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