Chandes Momentum Oscillator Indicator Analysis and Signals
Conceived and Engineered by Tushar Chande
Chandes Momentum Oscillator estimates energy of a currency pair.
This indicator uses a range from +100 to -100, letting traders easily see changes in momentum with the 0 mark as a central point.
Calculation
Chande momentum uses data for both up days & down days in the numerator, thence directly measuring strength.
Calculations are carried out on raw, unsmoothed data to expose short-term market fluctuations more clearly. However, smoothing techniques can still be applied to refine the oscillator's output.
FX Analysis and How to Generate Trading Signals
Buy Signal
This Oscillator estimates the energy of price.
Levels above Zero line are regarded and considered to be bullish/buy signals.
Greater indicator elevation correlates directly with intensified upward momentum in price.
Buy Signal
Sell Trade Signal
Levels below Zero line are regarded and considered to be bearish/sell trade signals.
A lower reading on this metric signifies stronger downward pressure on price movement.
Sell Trade Signal
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