Chande Momentum Oscillator Indicator Analysis and Signals
Developed by Tushar Chande
Chande Momentum Oscillator estimates energy 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, therefore directly measuring strength.
The calculations are performed and carried out on un-smoothed data. This allows for shortterm extreme market moves to be less hidden. However, smoothing can still be applied to the Oscillator.
Forex Analysis & How to Generate Signals
Buy Trade Signal
This Oscillator Trading Indicator estimates the energy of price.
Levels above Zero line are regarded and considered to be bullish/buy signals.
The higher the indicator goes the higher the upwards price momentum.
Buy Trade Signal
Sell Trade Signal
Levels below Zero line are regarded and considered to be bearish/sell trade signals.
The lower the indicator goes the higher the downwards price momentum.
Sell Trade Signal
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