Chande Momentum Oscillator Oil Technical Analysis & Trading Signals

Developed by Tushar Chande

Chande Momentum Oscillator measures momentum of a crude oil.

This Indicator uses a scale ranging between +100 & -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 un smoothed data. This allows for short-term extreme market movements to be less hidden. However, smoothing can still be applied to Oscillator.

Oil Technical Analysis and Generating Crude Trading Signals

Buy Crude Trading Signal

This Oscillator measures the momentum of crude trading price.

Levels above Zero line are considered to be bullish/buy oil signals.

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

Buy Trading Signal

Sell Crude Trading Signal

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

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

Sell Trading Signal