Chandes Momentum Oscillator Technical Analysis & Trading Signals
Developed by Tushar Chande
Chandes Momentum Oscillator measures momentum of indices.
This Indicator uses a scale ranging between +100 and -100 thus allowing the trader to clearly see changes in net momentum using the 0 level mark as a balance point.
Calculation
Chandes momentum uses data for both up days and 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 Technical Analysis & How to Generate Signals
Buy Trade Signal
This Oscillator measures the momentum of price.
Levels above Zero line are considered to be bullish/buy stock signals.
The higher the indicator goes the higher the upward price momentum.
Buy Signal
Sell Signal
Levels below Zero line are considered to be bearish/buy stock signals.
The lower the indicator goes the higher the downwards price momentum.
Sell Trade Signal
