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.
x is the period and must be an integer.
The 20 period Chande Momentum Oscillator can be written as follows.
100 * (C - C20) / SUM(ABS(C - C1), 20)
Writing this for the previous bar would involve manually adding 1 to all of the offset parameters in the formula.
100 * (C1 - C21) / SUM(ABS(C1 - C2), 20)