stockfetcher
980 posts
msg #26923 |
6/17/2003 4:28:57 PM
| Chande Momentum Oscillator (CMO) |
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| Parameters |
Period
AvgPeriod
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| Usage |
Chande Momentum Oscillator(20,9)
CMO(20,9)
Average CMO(20,9)
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| Description |
Used as both an oversold/overbought measure and as a trend indicator, the Chande Momentum Oscillator (CMO) was developed by Tushar Chande and Stanley Kroll. The CMO is calculated by first subtracting the sums of up and down days. This difference is then divided by the sum of all absolute changes during the given period.
With a high number of "up" days during the period, the value of the CMO will increase. Values above 50 typically indicate an overbought condition while values below -50 tend to signify oversold levels.
In addition to the raw CMO values, you can also specify the period for a smoothed version of the CMO signal. The second parameter to the CMO indicates the period for this smoothed signal. Often crossovers between the two values indicate trigger points.
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| Examples |
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