Chande Momentum¶
Indicators · Oscillators
Chande Momentum Oscillator — bounded ±100 momentum (sum-based, recentered to zero).
The Chande Momentum Oscillator (CMO), from Tushar Chande, is a momentum gauge bounded between −100 and +100 and centred on zero. It's related to RSI but built differently: it measures the net of up-moves versus down-moves over the window directly, without RSI's smoothing, which makes it more responsive and lets it swing to its extremes more readily. The zero centre means you read it like a momentum balance — positive is net buying, negative is net selling.
How it works¶
Over the Period (default 14) the block sums the up-day changes and the down-day changes of the Source, then computes (up − down) / (up + down) × 100. The result is bounded ±100 and recentred on zero: +100 means every bar in the window rose, −100 means every bar fell, 0 means up and down moves balanced. Overbought (default +50) and Oversold (−50) thresholds with OB/OS signals mark the extremes.
When to use it¶
Use CMO as a responsive momentum and overbought/oversold oscillator. Because it's unsmoothed it reacts faster than RSI and reaches its extremes more often, which suits shorter-term trading and divergence spotting. The zero-line cross is a momentum-direction signal; pushes beyond ±50 flag stretch. As with any momentum oscillator, an extreme reading in a strong trend is continuation, not reversal — filter the regime before fading.
Example¶
A momentum fade: apply Chande Momentum (14) to price, take the OS signal with CMO turning up via a Crosses Above, and route to a Buy Signal gated to a non-trending regime by ADX / DMI. Backtest in the Tester.
Tips & gotchas¶
- Faster than RSI — unsmoothed, so more responsive and more extreme-reaching.
- Zero-centred ±100 — read it as a buying-vs-selling balance.
- ±50 by convention — tune per asset; trends pin it high.
- Don't fade a strong trend — extremes there mean strength.
Related blocks¶
Inputs¶
| Socket | Type | What to wire in |
|---|---|---|
| Source | bars / series |
Price bars or any indicator series |
Outputs¶
| Output | Type | Plots as | Description |
|---|---|---|---|
| CMO | series |
Line · sub-pane | Chande Momentum value (−100..+100) |
| OB | signal |
— | True when CMO is above the overbought threshold |
| OS | signal |
— | True when CMO is below the oversold threshold |
Parameters¶
| Parameter | Type | Default | What it does |
|---|---|---|---|
| Period | number · 2–200 | 14 |
|
| Source | choice (close, open, high, low, hl2, hlc3, ohlc4) |
close |
|
| Overbought | number · 0.0–100.0 | 50.0 |
|
| Oversold | number · -100.0–0.0 | -50.0 |
|
| Line color | colour | #ab47bc |
Chart guides
This indicator draws reference level(s): overbought, oversold.
Reference auto-generated from the block catalog · category Indicators.