Chandes Momentum Oscillator Trading Analysis & Trading Signals
Created by Tushar Chande
Chandes 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
Chandes momentum uses data for both up days and 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 and How to Generate Signals
Buy Signal
This Oscillator measures the momentum of price.
Levels above Zero line are considered to be bullish/buy signals.
The higher the indicator goes the higher the upward trading price momentum.
Buy Signal
Sell XAUUSD Signal
Levels below Zero line are considered to be bearish/buy signals.
The lower the indicator goes the higher the downward trading price momentum.
Sell Trade Signal
