{"id":2183,"date":"2010-02-02T22:08:36","date_gmt":"2010-02-02T16:38:36","guid":{"rendered":"http:\/\/www.niftylivecharts.com\/blog\/?p=2183"},"modified":"2010-02-02T22:08:36","modified_gmt":"2010-02-02T16:38:36","slug":"chande-momentum-oscillator-application-and-chart","status":"publish","type":"post","link":"https:\/\/www.niftylivecharts.com\/blog\/chande-momentum-oscillator-application-and-chart\/","title":{"rendered":"Chande Momentum Oscillator : Application and Chart"},"content":{"rendered":"<p><strong><span style=\"text-decoration: underline;\">Chande Momentum Oscillator and Trading<\/span><\/strong><\/p>\n<p>Trading with the chande momentum oscillator is a challenging task. Since the indicator will oscillate between +100 and -100, a break of +50 could mean that it is overbought, but remember the indicator has another 50 points it can run. Many traders apply a moving average to the indicator and will use crosses of the CMO and a simple moving average to generate trade triggers. Another approach is to trade a security when the chande momentum oscillator has reached extreme readings. Extreme readings are an indication that a strong trend is in place, and traders will add to their positions on any minor corrections.<\/p>\n<p><strong><span style=\"text-decoration: underline;\">Chande Momentum Oscillator Overbought &amp; Oversold Levels<\/span><\/strong><\/p>\n<p>The CMO is surely a unique oscillator, but it also has overbought and oversold levels. Since the indicator is based on previous closing prices, it will oscillate between +100 and -100. Traders use a general rule that when the chande momentum oscillator is greater than +50 the security is said to be overbought, while a reading below -50 is considered oversold. Traders should not simply buy or sell a security because the indicator crosses these thresh holds, since this is a sure way to lose money.<\/p>\n<p><strong><span style=\"text-decoration: underline;\">Chande Momentum Oscillator Formula<\/span><\/strong><\/p>\n<p><strong><span style=\"text-decoration: underline;\"><a class=\"highslide\" onclick=\"return vz.expand(this)\" href=\"https:\/\/www.niftylivecharts.com\/blog\/wp-content\/uploads\/2010\/02\/chande-momentum-oscillator.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-2184\" title=\"chande-momentum-oscillator\" src=\"https:\/\/www.niftylivecharts.com\/blog\/wp-content\/uploads\/2010\/02\/chande-momentum-oscillator.png\" alt=\"\" width=\"200\" height=\"105\" \/><\/a><\/span><\/strong><\/p>\n<p>Su is the sum of the difference between today&#8217;s close and yesterday&#8217;s close. Sd represents the absolute value of the difference between today&#8217;s close and yesterday&#8217;s close on down days.<\/p>\n<p><a class=\"highslide\" onclick=\"return vz.expand(this)\" href=\"https:\/\/www.niftylivecharts.com\/blog\/wp-content\/uploads\/2010\/02\/chande-momentum-oscillator-chart.img_assist_custom.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-medium wp-image-2185\" title=\"chande-momentum-oscillator-chart.img_assist_custom\" src=\"https:\/\/www.niftylivecharts.com\/blog\/wp-content\/uploads\/2010\/02\/chande-momentum-oscillator-chart.img_assist_custom-300x208.png\" alt=\"\" width=\"300\" height=\"208\" srcset=\"https:\/\/www.niftylivecharts.com\/blog\/wp-content\/uploads\/2010\/02\/chande-momentum-oscillator-chart.img_assist_custom-300x208.png 300w, https:\/\/www.niftylivecharts.com\/blog\/wp-content\/uploads\/2010\/02\/chande-momentum-oscillator-chart.img_assist_custom.png 500w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chande Momentum Oscillator and Trading Trading with the chande momentum oscillator is a challenging task. Since the indicator will oscillate between +100 and -100, a break of +50 could mean that it is overbought, but remember the indicator has another 50 points it can run. Many traders apply a moving average to the indicator and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[5949,5952,5953],"class_list":["post-2183","post","type-post","status-publish","format-standard","category-general","tag-chande-momentum-oscillator","tag-chande-momentum-oscillator-application","tag-chande-momentum-oscillator-chart","entry","has-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/2183","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/comments?post=2183"}],"version-history":[{"count":0,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/2183\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/media?parent=2183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/categories?post=2183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/tags?post=2183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}