Concept
Chande Momentum Oscillator
Chande Momentum Oscillator is a Momentum & Oscillators concept. The Library holds 3 implementations, each one a working definition you can pull into Quant.
CMO
Top Chande Momentum Oscillator indicators
3 total
What is the Chande Momentum Oscillator?
The Chande Momentum Oscillator (CMO) is a bounded momentum oscillator introduced by Tushar Chande. Over a lookback window it sums the gains on up closes (Su) and the absolute losses on down closes (Sd), then computes 100 times (Su minus Sd) divided by (Su plus Sd). The result swings between +100 and -100, reaching an extreme only when every bar in the window closed in the same direction, and sitting at zero when gains and losses balance.
The construction is deliberately close to RSI with two differences: the sums are raw rather than smoothed, and the scale is symmetric around zero rather than 0 to 100. With the same window and simple averaging, CMO is a linear rescale of RSI (two times RSI minus 100); in practice the values differ because standard RSI uses Wilder's smoothing. The unsmoothed sums make CMO snappier, and noisier, than RSI at the same length.
How traders use it
- As an overbought/oversold gauge: +50 and -50 are the conventional extreme thresholds, with the usual caveat that readings can stay pinned during strong trends.
- As a zero-line regime read: the sign of CMO tells whether recent closes have netted up or down, a simple directional filter.
- As a trendiness input: the absolute value of CMO measures how one-sided recent movement is, which is how it drives the adaptive smoothing inside VIDYA.
Related concepts · Rate-of-change cluster
Concept family
Momentum & Oscillators
91 concepts mapped · 72 in the Library
Chande Momentum Oscillator FAQ
How is the CMO different from RSI?
Both compare up moves against down moves over a window, but CMO uses raw sums where standard RSI applies Wilder's smoothing, and CMO is scaled -100 to +100 around zero where RSI runs 0 to 100 around 50. With simple averaging the two are linear rescales of each other; the smoothing difference is what makes their real-world traces diverge.
What settings and thresholds are typical for the CMO?
Common lookbacks are 9, 14, and 20 periods, with +50 and -50 as the usual overbought and oversold lines. Shorter windows reach the extremes far more often; longer ones rarely do. As with any bounded oscillator, extreme readings mark stretched conditions rather than reversal signals, and they can persist while a trend keeps running.
Build Chande Momentum Oscillator your way.
Quant writes, tests, and refines it with you — then it runs on LuxAlgo charting or ports to TradingView.