Chande's Momentum OscillatorThe Chande Momentum Oscillator, developed by Tushar Chande was developed to capture what he calls pure momentum. The CMO is closely related to, yet unique from, other momentum oriented indicators such as RSI, Stochastic, and Rate-of-Change. It is most closely related to Welles Wilders RSI, yet it differs in several ways:
- It uses data for both up days and down days in the numerator, thereby directly measuring momentum.
- The calculations are applied on unsmoothed data. Therefore, short-term extreme movements in price are not hidden.
- The scale is bounded between +100 and -100, thereby allowing you to clearly see changes in net momentum using the 0 level.