Extra indicators
CMO: Chande Momentum Oscillator
Momentum between −100 and +100 from the sum of up moves and down moves over N candles.
The idea in plain words
Like RSI, CMO compares how much the price rose with how much it fell, but it uses the raw sums and measures momentum on both sides of zero.
How it is calculated
Add up the gains (SU) and the losses (SD) of the last N candles. CMO = 100 × (SU − SD) ÷ (SU + SD).
CMO = 100 × (ΣUp − ΣDown) ÷ (ΣUp + ΣDown)How to use it
- Above +50 overbought, below −50 oversold (classic levels).
- Zero line crosses as trend changes.
Drawing conclusions
- Values near ±100 mean the moves were almost all in one direction.
Example
GBPUSD H4, CMO(9) = −62: losses dominated the last 9 candles; traders watch for it to rise back above −50.
Prices in examples are illustrative.
Watch out for
- Strong trends can stay overbought or oversold for a long time.
A little history
Introduced by Tushar Chande in "The New Technical Trader" (1994).
Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.