Chandes Momentum Oscillator Commodity Trading Technical Analysis & Trading Signals

Developed by Tushar Chande

Chandes Momentum Oscillator measures momentum of commodity.

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.

Calculations are performed on unsmoothed data. This allows for short term extreme movements to be less hidden. However, smoothing can still be applied to the Oscillator.

Commodity Trading Technical Analysis & How to Generate Signals

Buy Trading Signal

This Oscillator measures the momentum of commodity price.

Levels above Zero line are considered to be bullish/buy commodity trade signals.

The higher the indicator goes the higher the upward commodity price momentum.

Buy Trading Signal

Sell Trading Signal

Levels below Zero line are considered to be bearish/buy commodity trade signals.

The lower the indicator goes the higher the downward commodity price momentum.

Sell Trading Signal