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 = ((PosSum - NegSum) / (PosSum + NegSum)) * 100
Where:
- PosSum = Sum of (Closecurrent- ClosePrevious) where (Closecurrent- ClosePrevious) is greater than zero
- NegSum = Absolute value of the sum of (Closecurrent- ClosePrevious) where (Close current- Close Previous) is less than zero
Example
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