Chande Momentum Oscillator: net up moves versus down moves over 9 bars, from -100 to +100, with levels at plus and minus 50.
Overview
The Chande Momentum Oscillator (CMO) measures momentum on a scale from -100 to +100 in its own pane. Overbought and oversold levels sit at +50 and -50 by default.
The line and fill are green while momentum is positive and red while negative.
How it works
Over the last 9 bars, add all up moves (Su) and all down moves (Sd) of the source. CMO = 100 x (Su - Sd) / (Su + Sd).
Unlike RSI it uses raw sums without smoothing, so it reacts quickly.
How to use it
- Some traders watch moves beyond +50 or -50 as stretched conditions.
- Use zero-line crosses to see changes in momentum direction.
- Look for divergence between CMO and price at swing points.
- Use its absolute value as a measure of trend strength.
These are ways some traders read it, for learning. They are not trade signals.
Settings
| Setting | Default |
|---|---|
| Settings | |
| LengthNumber of bars over which up moves and down moves are summed. | 9 |
| SourcePrice series used to measure bar-to-bar changes.Options: Close, Open, High, Low, HL2, HLC3, OHLC4, HLCC4 | Close |
| Overbought LevelLevel above which the oscillator is considered overbought. | 50 |
| Oversold LevelLevel below which the oscillator is considered oversold. | -50 |
| Style | |
| CMO LineColor of the CMO line. | #787b86 |
| BullishLine and fill color while momentum is positive, and shading of the oversold zone. | #089981 |
| BearishLine and fill color while momentum is negative, and shading of the overbought zone. | #f23645 |
| LevelsColor of the overbought, oversold, and zero lines. | #787b86 |
Alerts
You can alert on its line crossing a value or the candle close (from the chart's + menu); checked while ZoroCharts is open.
Notes and limits
- Works on any symbol and timeframe; it only needs candle data.
- Short lengths make it jumpy; longer ones smooth it.
Education only. Not financial advice. Indicators mark what happened on the chart; they do not predict what price will do. Trading futures, forex, crypto and other markets carries a high level of risk and may not be suitable for everyone.