[h = 373737] CMO
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The chande momentum oscillator CMO oscillator was developed by tushar chande, who tried to capture the "pure" momentum, which with others is mentioned and researched in his new technical trader.
While it is similar to RSI CMO differs but excels from it on several issues.
TYPE OF CALCULATION
CMO = Spup
-Did/ Sp+ Σdn where
Spup= sum of daily upward momentum n recent periods && Σdn= sum of daily downward moment in the last periods
BENEFITS OF CMO
1) measures directly the momentum by using the upward-downward values in the numerator
2) the fluctuation is between +100 & -100 with equilibrium level zero 0, so we have a more accurate scale of separation levels of the ascending from the descending momentum, at the same time the point 0 separates the ascending momentum from the descending (values above zero rise and fall of momentum)
trading rules
in a zone buy signal in the -50 level breakout from an upward CMO & sell signal in a break of +50 from a downward CMO
in tense
detecting deviations, designing stress lines on the CMO and monitoring these slopes, applying inverter formations to the oscillator line equivalent to those of the values.
let's look at the form of CMO in ME4
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The chande momentum oscillator CMO oscillator was developed by tushar chande, who tried to capture the "pure" momentum, which with others is mentioned and researched in his new technical trader.
While it is similar to RSI CMO differs but excels from it on several issues.
TYPE OF CALCULATION
CMO = Spup
-Did/ Sp+ Σdn where Spup
= sum of daily upward momentum n recent periods && Σdn= sum of daily downward moment in the last periodsBENEFITS OF CMO
1) measures directly the momentum by using the upward-downward values in the numerator
2) the fluctuation is between +100 & -100 with equilibrium level zero 0, so we have a more accurate scale of separation levels of the ascending from the descending momentum, at the same time the point 0 separates the ascending momentum from the descending (values above zero rise and fall of momentum)
trading rules
in a zone buy signal in the -50 level breakout from an upward CMO & sell signal in a break of +50 from a downward CMO
in tense
detecting deviations, designing stress lines on the CMO and monitoring these slopes, applying inverter formations to the oscillator line equivalent to those of the values.
let's look at the form of CMO in ME4
