Chandes Momentum Oscillator Stock Indices Analysis and Signals

Developed by Tushar Chandes

Chandes Momentum Oscillator measures momentum of a stock indices.

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.

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

Stock Indices Analysis and Generating Signals

Buy Signal

This Oscillator measures the momentum of price.

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

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

Buy Signal

Sell Signal

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

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

Sell Signal