Net Momentum Oscillator (NMO)
The Net Momentum Oscillator (NMO) is a variation on the RSI. Whereas the RSI based on the ratio of up periods to down periods, the NMO is the ratio of the momentum (up – down) to the absolute momentum (up + down) . The NMO is able to show overbought and oversold levels (greater than +50, less than -50) better than the RSI.
The Net Momentum Oscillator was developed by Tushar Chande and Stanley Kroll and was introduced in their article in the May, 1993 issue of Technical Analysis of Stocks & Commodities magazine.
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