Chandes Momentum Oscillator Technical Indicator Analysis & Trading Signals
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
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