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CMO

Type: cmo • Category: indicators

Description​

Chande Momentum Oscillator

Parameters​

NameTypeDescriptionRequiredDefault
dataExpstringprices datano
pricestringPrice field to use to calculate CMOno
timeperiodnumberNumber of periods to use for CMO calculationno14

Help​

CMO (Chande Momentum Oscillator)

Description​

The Chande Momentum Oscillator (CMO) is a technical indicator used in financial analysis to measure the momentum of a security's price. It was developed by Tushar Chande in 1994. The CMO calculates the difference between the sum of recent gains and the sum of recent losses, then divides the result by the sum of all price movements over a given period.

What does this worker do?​

This worker calculates the Chande Momentum Oscillator (CMO) for a given set of price data. It takes the following parameters:

  • dataExp: prices data
  • price: Price field to use to calculate CMO
  • timeperiod: Number of periods to use for CMO calculation

The worker returns the CMO values for the given data.

How to interpret the results​

The CMO values range from -100 to 100. A CMO value:

  • Above 50 indicates a strong upward momentum
  • Below -50 indicates a strong downward momentum
  • Between -50 and 50 indicates a neutral or weak momentum

Traders and analysts use the CMO to:

  • Identify overbought and oversold conditions
  • Detect divergences between price and momentum
  • Confirm trends and predict reversals

Usage​

To use this worker, simply provide the required parameters:

  • dataExp: Your price data
  • price: The price field to use (e.g. close, high, low)
  • timeperiod: The number of periods to use for calculation (e.g. 14, 21, 30)

Visualizing the CMO​

The CMO can be visualized on a chart to better understand its behavior. Here is an example of how to use the CMO:

Full CMO Example

For a quick overview:

Short CMO Example

Additional Information​

The CMO is a versatile indicator that can be used in various ways, such as:

  • As a standalone indicator to identify trends and reversals
  • In combination with other indicators to confirm signals
  • To detect divergences between price and momentum

By understanding the CMO and its applications, traders and analysts can gain valuable insights into market trends and make more informed investment decisions.