Time Series Forecast Indicator Formula, Trading Strategy

Time Series Forecast Indicator Formula

The Time Series Forecast indicator (TSF) shows the statistical trend of a security’s price over a specified time period. This indicator is referred to as a moving linear regression similar to a moving average. For an example, the TSF value that covers 10 days will have the same value as a 10-day TSF. The Time Series Forecast (TSF) indicator is based upon a regression-based forecast model. It predicts future price action based on known past events before we can measure them.

How To Attach Time Series Forecast Indicator On The Chart?

Traders can know more about the Time Series Forecast (TSF) indicator, then they can find it in the STUDIES section of Zerodha Kite. It also available in Kite mobile App. The default Period is 14. The default Field is close. You can set the value of it to open, high, low, close or hl/2, hlc/3, hlcc/4 and ohlc/4. Traders can use this indicator on to any time frame charts likes daily, weekly, monthly or intraday. You can also Check the image below to understand how to attach the TSF indicator in HDFC Bank share price chart.

Time Series Forecast Indicator

Interpretation of Time Series Forecast Indicator

Traders can interpret the Time Series Forecast indicator in the same way as other moving averages. This indicator is useful for smoothing noise out of the price movements with the analysis of moving averages traders can gain a general idea of where the underlying trend is headed. TSF formula creates a visual display of the statistical trend of the stock price over a specified time period. Where the simple moving average is the trend of historical closing prices for a time period. The TSF is the trend of stock prices based on linear regression of closing prices. The TSF does not create a straight linear regression trend line. Rather the TSF plots the last point of multiple linear regression trend lines.

Time Series Forecast Indicator Formula


The indicator is an interesting tool for traders who are tired of trading lag between the underlying prices of a stock and the moving average. This is differentiated moving averages by not only be more responsive to price changes but it also forecasting future price changes. This is depending on traders trading strategy in using least squares regression technique. Compare to all trading indicators, we always suggest that trader experiment with different time frames to find the one that suits traders trading and risk profile. Also, traders can use multiple indicators to provide confirmation for buy and sell signals.

Time Series Forecast Indicator Formula, Trading Strategy

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