Chande Momentum Oscillator Technical Analysis & Trading Signals

Created by Tushar Chandes

Chande Momentum Oscillator measures momentum of a energies.

This Indicator uses a scale ranging between +100 and -100 thus allowing the trader to clearly see changes in net momentum using the 0 level mark as a balance point.

Calculation

Chande momentum uses data for both up days and down days in the numerator, thereby directly measuring momentum.

Calculations are performed on unsmoothed data. This allows for short-term extreme market movements to be less hidden. However, smoothing can still be applied to Oscillator.

Energy Technical Analysis & Generating Trading Signals

Buy Trading Signal

This Oscillator measures the momentum of price.

Levels above Zeroline are considered to be bullish/buy signals.

The higher the indicator goes the higher the upward price momentum.

Buy Trading Signal

Sell Trading Signal

Levels below Zero line are considered to be bearish/buy signals.

The lower the indicator goes the higher the downward price momentum.

Sell Trading Signal