Chande Momentum Oscillator (CMO)

The Chande Momentum Oscillator is a modified RSI. Where the RSI divides the upward movement by the net movement (up / (up + down)), the CMO divides the total movement by the net movement ((up - down) / (up + down)).

There are several ways to interpret the CMO. Values over 50 indicate overbought conditions, while values under -50 indicate oversold conditions. High CMO values indicate strong trends. When the CMO crosses above a moving average of the CMO, it is a buy signal, crossing down is a sell signal.

The Chande Momentum Oscillator was developed by Tushar S. Chande and is described in the 1994 book The New Technical Trader by Tushar S. Chande and Stanley Kroll.

Formula:




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