Chande Momentum Oscillator

The Chande Momentum Oscillator was developed by Tushar Chande. It is normally described as sum of all gains and losses over a period of bars divided by the absolute value of all recent gains and losses over the same period of bars.

This is just the total net change period divided by the sum of the absolute values of the individual net changes over the period. The resulting indicator runs from -100 to 100.

The period is normally set to 20 with values above 50 being considered overbought and values below -50 being oversold. The higher the magnitude or absolute value of the indicator the stronger the trend.

Custom PCF Formula

Where #period is the period and must be an integer.

Example: 

/// <desc>The sum of all gains and losses over a period of bars divided by the absolute value of all recent gains and losses over the same period of bars</desc>
/// <tag>CMO</tag>
param #Period = 20 /// <desc></desc>
100 * (C - C#Period) / SUM(ABS(C - C1), #Period)
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Edit steps:

  1. Plot style--choose display style (default is Line)
  2. Plot color--user choice (grey selected for example)
  3. Period--choose period for indicator (correct for this indicator, 1)
  4. Average Type--choose average type (default is Simple)
  5. Formula:
    • Green text preceded by /// is description and not used in calculation
    • param #period = lets you set the period for calculation (20 is default)
    • Formula: 100 * (C - C#Period) / SUM(ABS(C - C1), #Period)
  6. Line style--choose display style for indicator (solid, dotted, dashed)
  7. Line width--select from different widths for line
  8. Conditional Colors--set color of indicator based on conditions created (none in default)
  9. Plot opacity--select display opacity for indicator
  10. Data source--choose data on which indicator is calculated (Main Chart is default)
  11. Label--name to be displayed in the indicator pane

For more traditional display, add horizontal lines:

Click on the display name in the indicator pane and choose Horizontal Line)

  • White dashed line, 0 value
  • Green dashed line, 50 value
  • Red dashed line, -50 value