What it does
The Chande Momentum Oscillator (CMO) measures pure momentum by comparing the sum of gains to the sum of losses over a lookback period, typically 20 bars. It is computed as the sum of up-day changes minus the sum of down-day changes, divided by the total of both, multiplied by 100, giving a bounded scale from -100 to +100. Unlike RSI it uses unsmoothed sums, so it reacts faster and reaches its extremes more readily.
How to add it
Click Indicators (ƒx) in the header.
Search “Chande Momentum Oscillator” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- Readings above +50 indicate overbought momentum and readings below -50 indicate oversold momentum; look for a turn back toward zero as an exit or fade cue.
- The zero line acts as a trend filter: sustained readings above zero favor long setups, sustained readings below zero favor shorts.
- Divergence between price and CMO (new price high with a lower CMO high) warns of fading momentum before a reversal.
- Because it is unsmoothed and jumpy, many traders add a short moving average of the CMO and trade its crossovers instead of raw values.
Inputs
| Input | Type | Default | Range / Options |
|---|---|---|---|
| Length | number | 9 | 1–2000 |
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| Chande MO | line | #2196F3 |
Every plot's color, line width and visibility can be changed on the Style tab. Precision (default 2 decimals), price-scale labels and status-line values are configurable at the bottom of the Style tab.
Tips
- Hide the study from the legend eye instead of removing it when you only want it out of the way temporarily.
- Merge multiple oscillators into one pane from the legend ⋯ menu to compare them on a shared axis.
- Double-click the plot to open settings directly, skipping the legend hover.
Watch out for
- Its lack of smoothing makes it noisier than RSI, producing frequent false extreme readings on volatile instruments.
- In strong trends the CMO can stay pinned near +50 or -50 for long stretches, so fading overbought or oversold readings against the trend is costly.