Chande Momentum Oscillator Technical Analysis and Forex Trading Signals
Developed by Tushar Chande
Chande Momentum Oscillator measures momentum of a currency pair.
This Indicator uses a scale ranging between +100 and -100 thus allowing the trader to clearly see changes in net momentum using the 0 level mark as a balance point.
Chande momentum uses data for both up days and down days in the numerator, thereby directly measuring momentum.
The 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.
Technical Analysis and Generating Signals
This Oscillator measures the momentum of price.
Levels above Zero line are considered to be bullish/buy signals.
The higher the indicator goes the higher the upward price momentum.
Levels below Zero line are considered to be bearish/sell signals.
The lower the indicator goes the higher the downward price momentum.