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Creator: Tushar Chande
The CMI indicator consists of two lines plotted below the chart.
The CMI indicator smooths the trend and indicates the strength or momentum of the trend.
The higher the CMI Indicator, the stronger the trend.
Overbought is considered a level above 50, and oversold is considered a level below -50.
Whenever the indicator crosses the average line from below, it indicates that the trend is becoming stronger. An indicator above the Moving Average line indicates a bullish trend, whereas an indicator below the Moving Average line suggests a bearish trend.
The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.
This indicator is available in the System Builder on RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.
The indicator is applicable to all types of charting. It is calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin-Ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.