Chandes Momentum Oscillator Technical Analysis & Trading Signals

Developed by Tushar Chandes

Chandes Momentum Oscillator measures momentum of a crude oil.

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 and down days in the numerator, thereby directly measuring momentum.

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

Technical Analysis & Generating Trading Signals

Buy Signal

This Oscillator measures the momentum of crude price.

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

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

Buy Signal

Sell Signal

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

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

Sell Trade Signal