Chandes Momentum Oscillator Indicator Analysis and Signals
Developed and Created by Tushar Chande
Chandes 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.
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.
The higher the indicator goes the higher the upwards price momentum.
Buy 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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