Unlike other forms of forecasting which are directional in nature, a point forecast identifies an event in which price reverses to a statistical reference, irregardless of its current direction.
Point forecasts are commonly used in event arbitrage, where specific times are used to identify such events. A “point” would refer to a specific time at which price is expected to reverse, in such a case.
Point forecasts are also commonly used in volatility and wave studies where direction is only later considered following a reversal event.
Many strategies relying upon point forecasts use regression analysis to determine appropriate points of exit.