Analysis of Chande Momentum Oscillator Indicator and Trading Signal Strategies
Conceived and Engineered by Tushar Chande
Chandes Momentum Oscillator Indicator measures momentum of indices.
This specific indicator operates within a scale spanning from +100 down to -100, enabling the market participant to clearly observe shifts in net momentum, using the Zero level as the point of equilibrium.
Calculation
The Chandes momentum uses data for days when prices went up and down in the numerator, so it measures momentum directly.
Calculations are performed on raw, unsmoothed data to highlight short-term market extremes more clearly. Smoothing can still be applied to refine the Oscillator Indicator readings.
Stock Technical Analysis and How to Generate Trading Signals
Buy Signal
This Oscillator Indicator measures the energy of price.
Levels above Zero line are considered to be bullish/buy stock signals.
Higher placements of this indicator correlate with stronger upward force in the price action.
Buy Signal
Sell Trading Signal
Levels below Zero line are considered to be bearish/buy stock signals.
A lower reading on this metric signifies stronger downward pressure on price movement.
Sell Signal
Examine More Subjects & Educations:
- Analysis of the McGinley Dynamic Index Indicator
- How Do I Add DJ 30 to MetaTrader 5 Mobile Trading App?
- What's DAX 30 Strategies?
- DJI30 Indices Strategies
- How Do You Interpret 23.6% Index Chart Fibonacci Pullback Level?
- How Can I Place More Trade Charts in MetaTrader 4 Trading Platform?
- How to Activate a MetaTrader 4 Index Robot on MT4 Software
- Calculation of Pip Value for the EU50 Index Group.
- Insights into NIKKEI MT5 Platform and its Features
- Listing of Beginner Indices Strategies for Beginners
