Chande Momentum Oscillator Trading Analysis & Trading Signals

Developed by Tushar Chande

Chande Momentum Oscillator measures momentum of gold.

This Indicator uses a scale ranging between +100 & -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.

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

XAUUSD Analysis & How to Generate Signals

Buy Signal

This Oscillator measures the momentum of xauusd 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 XAUUSD 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 Trade Signal