# Chande Forecast Oscillator Chande Forecast Oscillator is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. Chande Forecast Oscillator plots %F: the percentage gap between the close and the endpoint of a 14-bar least-squares regression fit. Positive readings mean price runs ahead of its fitted trend, negative behind it, with a 3-period signal line for earlier crosses, a zero-anchored gradient, and alerts on both cross types for momentum traders. - Indicator in the LuxAlgo Library, by LuxAlgo, published Mar 5, 2026. - Access: free. - Concepts: [Chande Forecast Oscillator](https://www.luxalgo.com/library/concept/chande-forecast-oscillator/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=nsnddy3yhys9odnc7058s0b5 - Page: https://www.luxalgo.com/library/indicator/chande-forecast-oscillator/ **Chande Forecast Oscillator** measures the distance between price and its own fitted trend: each bar a least-squares line is fit to the recent values, its endpoint is taken as the forecast for the current bar, and the oscillator is the gap between price and forecast as a percentage of price. This build renders Tushar Chande's [forecast oscillator](https://www.luxalgo.com/library/concept/chande-forecast-oscillator/) in its definitive clean form: the %F line colored by sign, a zero line, a trigger average, and a gradient fading toward zero. ## How to Trade the Chande Forecast Oscillator? - **Zero cross up**: the close moved above its regression forecast, short-term strength against the fitted trend. - **Zero cross down**: the close dropped below the forecast, short-term weakness by the same logic. - **Trigger-line crosses**: the oscillator crossing its own short average acts sooner than the zero cross and whips more often; both directions carry alerts. - **Stretch**: the scale has no fixed bounds, so a large reading is judged against the instrument's own recent envelope, not universal levels. In a steady trend the line hovers near zero (price simply meeting its own forecast), so persistent readings on one side mark acceleration or fatigue rather than direction alone. ## Chande Forecast Oscillator Settings - **Source** (default close): the series the regression is fit to; closes are the standard from the original %F formulation. - **Regression Length** (default 14): bars in the least-squares window. Short windows hug price and cross zero often; long ones follow the broader trend and flag deviations more sparingly. - **Signal Smoothing** (default 3, SMA): length and type (SMA or EMA) of the trigger average. - Style: bullish and bearish colors, the signal-line color, **Show Signal Line** (default on), and **Gradient Fill** (default on). ## Frequently Asked Questions ### Is this the same as the Chande Momentum Oscillator? No. They share an author, not a formula. The [Chande Momentum Oscillator](https://www.luxalgo.com/library/indicator/chande-momentum-oscillator/) nets up closes against down closes on a bounded -100 to +100 scale, while the CFO measures percentage deviation from a regression fit and is unbounded. ### Why a regression forecast instead of simple momentum? Classic momentum subtracts a single reference close N bars back, so the value swings on whatever that lone bar did. The regression uses every bar in the window, answering against the whole fit rather than one reference point. ### How should I use the signal line? As the early warning. The oscillator crossing its 3-period average typically fires before the zero cross, so aggressive traders act on the trigger and conservative ones wait for zero. Hiding the line does not disable its alerts. ## Related indicators - [Internal Candle Strength](https://www.luxalgo.com/library/indicator/internal-candle-strength/) (Balance of Power): markdown at https://www.luxalgo.com/library/indicator/internal-candle-strength.md - [Pretty Good Oscillator](https://www.luxalgo.com/library/indicator/pretty-good-oscillator/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/pretty-good-oscillator.md - [Gator Oscillator](https://www.luxalgo.com/library/indicator/gator-oscillator/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/gator-oscillator.md - [Wave Trend Oscillator](https://www.luxalgo.com/library/indicator/wave-trend-oscillator/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/wave-trend-oscillator.md - [Traders Dynamic Index](https://www.luxalgo.com/library/indicator/traders-dynamic-index/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/traders-dynamic-index.md - [Center of Gravity](https://www.luxalgo.com/library/indicator/center-of-gravity/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/center-of-gravity.md - [QQE Weighted Oscillator](https://www.luxalgo.com/library/indicator/qqe-weighted-oscillator/) (QQE): markdown at https://www.luxalgo.com/library/indicator/qqe-weighted-oscillator.md - [5/35 Oscillator](https://www.luxalgo.com/library/indicator/5-35-oscillator/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/5-35-oscillator.md --- Source: https://www.luxalgo.com/library/indicator/chande-forecast-oscillator/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/