Chande Momentum Oscillator Analysis and Signals
Developed by Tushar Chande
Chande Momentum Oscillator measures momentum of a currency pair.
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 & down days in the numerator, thereby directly measuring momentum.
The 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 the Oscillator.
Forex Analysis & How to Generate Signals
Buy Trade Signal
This Oscillator measures the momentum of price.
Levels above Zeroline are considered to be bullish/buy signals.
The higher the indicator goes the higher the upwards price momentum.
Buy Signal
Sell Signal
Levels below Zero line are considered to be bearish/sell signals.
The lower the indicator goes the higher the downwards price momentum.
Sell Signal
