Forecast Oscillator is one of forex technical indicator used in forex technical analysis. This Forecast Oscillator Indicator is above the zero point if the forecast price is higher than the current price. On the contrary, if it’s below it turns out to be less than zero.

The Forecast Oscillator compares the actual price to the time series forecast. If this oscillator stays above the zero line for a continuous period, it indicates that the price will rise in the future. If stays below the zero line for a continuous period, it indicates that the price will fall.

When the forecast price and the current price are equal, the oscillator makes a zero. Current prices that are constantly over the forecast price suggest higher prices ahead and prices that are constantly under the forecast price suggest lower prices ahead.

Short-term traders should use shorter time periods and perhaps more relaxed standards for the required length of time above or below the forecast price. Long-term traders should use longer time periods and perhaps stricter standards for the required length of time above or below the forecast price.