CMI - Chande Momentum Indicator

[Tams 20]

CMI - Chande Momentum Indicator

 

 

Also known as CMO - The Chande Momentum Oscillator.

 

The Chande Momentum Indicator was created by Tushar Chande

and is described in his book The New Technical Trader.

 

The Chande Momentum Indicator is closely related to the Relative Strength Index.

 

It differs from RSI and Stochastics by using information from both up and down days.

 

It is similar to RSI and Stochastics that you are looking for overbought and oversold signals.

 

The overbought level is at +50 and the oversold level at -50.

These levels approximate the 70/30 levels on the Relative Strength Index.

 

The CMI is also useful to spot trends, used in a similiar manner as the Vertical Horizontal Filter (VHF).

 

The higher the Chande Momentum Indicator the stronger the trend.

Buy when a long period CMI crosses above the short period moving average of the CMI.

Sell at the converse.

Chande Momentum Indicator (MultiCharts).pla

[Tams 20]

// Type : Function, Name : CMO

{ Function (series/double): CMO (Chande Momemtum Oscillator) }
{ coded by eKam, 7/20/2003 }

input: Price(NumericSeries),Length(NumericSimple);

var: CMO1(0), CMO2(0);
CMO1 = summation(iff(Price > Price[1], Price - Price[1], .001), Length);
CMO2 = summation(iff(Price < Price[1], Price[1] - Price, .001), Length);

CMO = 100 * ((CMO1 - CMO2) / (CMO1 + CMO2)) ;

 

 

// Type : Indicator, Name : Chande's Momemtum Oscillator

{ Indicator: Chande Momemtum Oscillator }
{ coded by eKam, 7/20/2003 }

input:
Price(C),
Length(14),
OverBought(50),
OverSold(-50);

plot1(CMO(Price, Length), "CMO");
plot3(OverBought, "OB");
plot4(OverSold, "OS");

[emptyvault 10]

very thanks !!

I am just seeking it .

[Tams 20]

related thread:

VIDYA - The Variable Index Dynamic Index by Tushar Chande

http://www.traderslaboratory.com/forums/f46/vidya-tushar-chande-6035.html