CMO

Creator: Tushar Chande

• Period: 14
• Average Period: 9

There are two lines plotted below the chart in the CMO indicator.

1. Green line represents CMO
2. Red line represents the Average

CMO is a momentum indicator that ranges from -100 to +100.

If the Chande Momentum Oscillator is above +50, a stock is considered overbought. If it is below -50, the stock is considered oversold.

It is similar to the RSI momentum indicator in many ways, but it calculates momentum using addition instead of averaging.

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.

Click here to learn more about CMO Indicator

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.