A pure-momentum oscillator that divides the difference between total up-moves and total down-moves by their sum, scaled to -100 to +100. It uses the difference and skips smoothing, making it faster than RSI.
The CMO (Chande Momentum Oscillator) is an oscillator introduced by Tushar Chande in 1994. Published in his book The New Technical Trader, it reworks the structure of RSI with the goal of reflecting momentum more directly.
It measures one thing: how lopsided the contest between up-force and down-force has been over a given period. Take the sum of up-moves and the sum of down-moves within the window, then divide their difference by their sum. The result lands between -100 and +100, swinging around a zero center.
Closer to +100 means the period was almost entirely up; closer to -100 means almost entirely down; near zero means up and down are evenly matched. Where RSI uses a one-sided 0-to-100 scale, CMO places zero in the middle on a two-sided scale, so the sign of momentum is visible at a glance.
How to Read
OANDA:USDJPY
Members Only
Full access is reserved for members of the library.