Chandes Momentum Oscillator Commodities Analysis and Trading Signals

Developed by Tushar Chandes

Chandes Momentum Oscillator measures momentum of a commodity.

This Indicator uses a scale ranging between +100 and -100 thus allowing the trader to clearly see changes in net momentum using the 0 level mark as a balance point.

Calculation

Chande momentum uses data for both up days & down days in the numerator, thereby directly measuring momentum.

Calculations are performed on unsmoothed data. This allows for short-term extreme market movements to be less hidden. However, smoothing can still be applied to Oscillator.

Commodity Analysis and Generating Trade Signals

Buy Trade Signal

This Oscillator measures the momentum of trading price.

Levels above Zero line are considered to be bullish/buy trade signals.

The higher the indicator goes the higher the upward trading price momentum.

Buy Trading Signal

Sell Trading Signal

Levels below Zero line are considered to be bearish/buy trade signals.

The lower the indicator goes the higher the downward trading price momentum.

Sell Trading Signal