The Times Series Forecast is an indicator based on the linear regression technique. It uses the least squares method to fit a straight line to data points. In this way, it calculates the best-fit line over a period of time. Besides, it offers traders a general idea of where the underlying trend is heading.
In This Article
What is the Times Series Forecast?
How To Analyse Chart Using Times Series Forecast
Category
Momentum
Type
Leading
What is the Times Series Forecast?
It is a technical indicator showing the statistical trend of a security’s price over a specified time period. This indicator is called moving linear regression and is exceedingly similar to a moving average (MA). Based upon a regression forecast model, the Times Series Forecast predicts future price action based on past events. Although it isn’t a holy grain, the Times Series Forecast is an efficient tool if used correctly.
How To Analyse Chart Using Times Series Forecast
It is easy to use the TSF indicator as a trader. Its interpretation is similar to that of a moving average. The TSF line gets plotted on the security pierce candlestick and tells you the future price of the securities. Read on to learn how to analyse it on a chart and use it in your trading strategy.
The Times Series Forecast Trading Strategy
If the price is below the TSF line on the chart, it is a buy signal. Conversely, a signal to sell is when the price is far above the TSF line.