The Forecast Oscillator and therefore the time series forecast are based on . The time series forecast indicator is equal to the sum of two other indicators: the (LinearReg) and the slope (LinearReg_Slope).
If the Forecast Oscillator stays above the zero line for an extended period, then it signals that the price may rise in the future and if it stays below the zero line for an extended period, then it signals a coming fall in the security price.
The indicator name is "Forecast Oscillator" and it accepts two arguments. The first argument is the time series that is used in the next bar forecast (It is usually the close price) and the second one is the period that will be passed to the time series forecast function during calculation . The indicator returns a value in percentage that corresponds to the close price minus the previous value of the time series forecast, multiplied by 100 and divided by the close price.
Just look at the exaggerated movements of the oscillator especially in trend changes. Some examples can be experienced on the chart in rectangles.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.