Chande Forecast Oscillator on IQ Option
The Chande Forecast Oscillator on IQ Option

Technical indicators are designed to help you make accurate decisions in trading. There are plenty of them on the IQ Option platform. It is a good idea to get familiar with them so you can choose the ones that suit you best. To make this choice easier I describe them for you regularly. Today I will introduce the Chande Forecast Oscillator.

Introduction to the Chande Forecast Oscillator

The Chande Forecast Oscillator measures upward and downward momentum without smoothing the results, activating the oversold and overbought penetrations more often. It ranges between -1 and +1. It falls into oversold and overbought areas when oscillates below -0.5 or above +0.5.

There are three key matters for the oscillator.

  • First, the timeframe a trader chooses has a great influence on the signals.
  • Second, the signals from the absolute oscillator levels are often less credible than the signals received from the recognition of the patterns.
  • Third, in the case of a strong trend in the market, the oversold and overbought indicators are not very successful.

Adding the Chande Forecast Oscillator to the IQ Option platform

Setting up the oscillator comes down to finding its name on the list of indicators. To access this list you should first click on the chart analysis icon. Next, choose the “Momentum” from the available categories. A new list will unfold. You will find the Chande Forecast there.

How to add Chande Forecast Oscillator on IQ Option platform
How to add the Chande Forecast Oscillator on the IQ Option platform

The Chande Forecast Oscillator indicator's formula

The Chande Forecast Oscillator draws a line on the chart. It is calculated as the difference between the closing price and the n-period linear regression of the forecasted price.

Chande Forecast Oscillator = [(Close(i) – Linear Regression) x 100] / Close(i)

Fortunately, the IQ Option platform counts and draws the indicator line itself. Counting the linear regression manually would be highly problematic especially on intraday charts.

Chande Forecast Oscillator on EURUSD chart
The Chande Forecast Oscillator on the EURUSD chart

How to use Chande Forecast Oscillator?

The Chande Forecast Oscillator can be used in a few ways. The first one requires adding a moving average with period 10. When the indicator exceeds the moving average, it produces a bullish signal. A bearish one will occur when the indicator falls beneath the moving average.

The moment the Chande Forecast indicator crosses below or above the 0 line can be utilised as a confirmation of the signal given by different moving averages crossovers.

Another option is to use the Chande Forecast as a measurement of the trend strength. Simply check the oscillator value and it will indicate whether the anticipated trend will be strong or weak.

Lastly, it can be used to catch negative and positive price divergences between the oscillator and the underlying asset. By negative divergence we mean the situation when the price of the asset is rising, but the Chande Forecast is falling. A positive divergence is in the opposite scenario: the price on the chart is falling but the indicator is going up. Trading divergences can be the best Chande Forecast Oscillator trading strategy.

An example of using the Chande Forecast Oscillator on the IQ Option platform

In the following example, you can notice a negative divergence. The price of the EURUSD currency pair is rising. At the same time, the Chande Forecast Oscillator is falling. The moment to enter a sell position requires some additional signs such as candlestick formation.

You can spot divergencies between price and CFO to trade forex on IQ Option
You can spot divergences between price and CFO to trade forex on IQ Option

Tushar Chande has created a whole family of indicators. His 25 years of market experience tells us to trust his indicators. They usually eliminate some of the disadvantages of classical technical analysis indicators. However, it should be remembered that each indicator is only an arithmetic transformation of historical price data. Indicators are intended to help in chart interpretation. However, they will never replace it. At IQ Option you will also find the Chande Momentum Oscillator, which is also worth getting to know.

This is all you need to know about the Chande Forecast indicator. Head over to your IQ Option free demo account and practice using it on the platform. You can learn there to catch the signals on time to make profitable transactions. Then, you are ready to switch to the live account and start making real money.

Best of luck!


IQ option products like CFDs and options are investments that can be risky. This means that if you invest in them, you could lose your money quickly. In fact, 83% of people who invest in CFDs with this provider "IQ Option" lose money. You should make sure you understand how CFDs work and if you can afford to risk losing your money. Remember, this article is not giving you any advice about investing. Any information about what happened in the past or what could happen in the future is just an opinion and not guaranteed to be true. Including examples given in the content displayed.
Be warned!

How useful was this post?

Click on a star to rate it!

Average rating 4.7 / 5. Vote count: 10

No votes so far! Be the first to rate this post.

As you found this post useful...

Follow us on social media!

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

Bart Bregman

Author / IQ Option expert: "My name is Bart Bregman, I have 9 years of full-time professional trading experience. I've been trading with IQ Option for more than 7 years, mainly on the shorter time frames doing technical analyses, and have many experience with Binary Options, CFDs, Options, and Crypto trading. There is no such thing as a bad trade! As a digital nomad trader, I'm mostly traveling all over the world. Follow my journey on Instagram at "

Leave a Reply

Your email address will not be published.

19 − 5 =