RD-Forecast is a powerful
VertexFX client side VTL oscillator that provides zero-lag identification of market
cycles and turning points. Because of its low lag, it is
often called the forecast oscillator.
It is based on the concept of
weighted smoothing and regression. At first step, we calculate the various
regression and smoothing constants based for the regression period T3 and the
smoothing constant B. In second step, we calculate the Linear Weighted Moving
average of the closing prices over the regression period. The nearest
candle has the highest weight multiplier, and the farthest candle has the
lowest weight multiplier.
Now, we calculate the main BLUE indicator
value by smoothing it six times using the smoothing co-efficient e1, e2,
e3, e4, e5 and e6 calculated in step one.
The signal RED is
calculated by smoothing the main BLUE indicator, using the smoothing
constant of B. The concept behind this indicator is that, by giving a higher weight
age to the current price over the previous and farther prices, we are able to
identify the trend with higher accuracy (lower error factor) using linear
regression. Using the smoothing co-efficiente1, e2, e3, e4, e5 and e6 ,
the lag is eliminated and we get a better quality of the signal.
Buy: Place Buy position when
main Blue line closes above the signal RED line. Both lines must be below zero
level. Do not enter trade if candle has opened with a gap-up.
Sell: Enter SELL when main
BLUE line closes below the signal RED line. Both lines must be above zero
level. Do not enter trade if candle has opened with a gap-down.
C:\ProgramData\VertexFX Client
Terminals\"Company name"\VTL10\Local VTL Scripts
Then right click on the tree and
select refresh or restart your client station and you will find under VTL local scripts in your client terminal.
You can check this video that
talks about RD-Forecast indicator: