CFO Pass Node
Chande Forecast Oscillator — Series Input
Overview
The CFO Pass Node computes the Chande Forecast Oscillator on a series input. It measures the percentage difference between the current price and its linear regression forecast, identifying when price has deviated from its statistical trend.
Positive values indicate price is above its regression line (overbought tendency); negative values indicate price is below it (oversold tendency). Zero-line crossings signal trend direction changes, making it useful for identifying entry and exit points in trending markets.
Formula
Parameters
| Parameter | Default | Description |
|---|---|---|
| period | 14 | Lookback period for linear regression |
Inputs & Outputs
| Slot | Direction | Type | Description |
|---|---|---|---|
| input | Input | { values, timestamps } | Price or any numeric series |
| values | Output | (number | null)[] | CFO values oscillating around 0; nulls during warm-up |
| timestamps | Output | number[] | Unix timestamps aligned to input |
Use Cases
Trend Reversal Detection
CFO zero-line crossings signal when price crosses its regression forecast — a potential reversal or momentum shift in the prevailing trend direction.
Overbought / Oversold Extremes
Extreme positive or negative CFO readings indicate price has stretched far from its statistical forecast, suggesting a mean-reversion opportunity.
Confirming Linear Regression Breakouts
Use CFO to confirm breakouts above or below the regression channel — sustained positive CFO confirms an upside breakout.
Tips & Best Practices
Period Selection
Shorter periods (10–14) respond faster and suit intraday trading. Longer periods (20–30) smooth out noise and are better for swing and position trading.
Compare with CFO (OHLCV)
This Pass node accepts any numeric series. For standard price-based CFO, connect the close price series. For custom momentum analysis, feed pre-processed indicator output.
Divergence Analysis
When price makes new highs but CFO makes lower highs, bearish divergence is forming — the trend is losing its statistical momentum relative to the regression line.