The Chande Momentum Oscillator (CMO) attempts to capture the momentum of the instrument. The indicator oscillates between -100 and 100 with overbought level of 50 and oversold level of -50.
Configuration Options
- Period: Number of bars to use in the calculations.
- Color Selectors: Colors to use for graph elements.
- Over Zones Enabled: Whether to shade the area between the plot and the horizontal overbought and oversold levels.
- Over Bought: Overbought quantity
- Over Sold: Oversold quantity
- Display Axis Label: Whether to display the most recent value on the Y axis.
Formula
[CMO = left (frac{PosSum – NegSum}{PosSum + NegSum} right )times 100]
where:
[PosSum = sum (Close_{current};-;Close_{previous});when;(Close_{current};-;Close_{previous}) > 0]
[NegSum = sum left | (Close_{current};-;Close_{previous}) right |;when;(Close_{current};-;Close_{previous})