Chande Momentum Oscillator Indices Technical Analysis & Trading Signals

Developed by Tushar Chande

Chande Momentum Oscillator measures momentum of indices.

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, thereby directly measuring momentum.

The calculations are performed on un smoothed data. This allows for short-term extreme market movements to be less hidden. However, smoothing can still be applied to the Oscillator.

Stock Indices Technical Analysis & How to Generate Signals

Buy Trading Signal

This Oscillator measures the momentum of price.

Levels above Zero line are considered to be bullish/buy stock indices signals.

The higher the indicator goes the higher the upward price momentum.

Buy Trading Signal

Sell Trading Signal

Levels below Zero line are considered to be bearish/buy stock indices signals.

The lower the indicator goes the higher the downward price momentum.

Sell Trading Signal