Charts

Chande Momentum Oscillator (CMO)

Description

The Chande Momentum Oscillator (CMO) developed by Tushar Chande 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.

Formula

\[CMO = \left (\frac{PosSum - NegSum}{PosSum + NegSum} \right )\times 100\]

where:

\[PosSum = \sum (Close_{current}\;-\;Close_{previous})\;when\;(Close_{current}\;-\;Close_{previous}) > 0\]

\[NegSum = \sum \left | (Close_{current}\;-\;Close_{previous}) \right |\;when\;(Close_{current}\;-\;Close_{previous}) < 0\]