BTCUSDT 4 Hour - VIDYA Strategy [CYRANO]This is a 4-hour VIDYA (Variable Index Dynamic Average) trading strategy tailored for the BTCUSDT trading pair. Below is a breakdown of the strategy's logic and functionality:
Overview
Objective:
To identify trend reversals and directional movements in BTCUSDT using the VIDYA indicator.
Incorporates volume analysis for trend strength and uses Delta Volume to measure the dominance of buying or selling pressure.
Core Indicators:
VIDYA: A dynamic moving average that adapts to market volatility using a Chande Momentum Oscillator (CMO) for smoothing.
ATR Bands: Based on Average True Range (ATR), create dynamic upper and lower bands around VIDYA for trend detection.
Pivot Points: Identify local highs and lows to visualize liquidity zones and trend structures.
Key Components
1. Inputs
VIDYA Settings:
Period for VIDYA calculation (default 3).
Momentum length for VIDYA smoothing (default 16).
ATR Bands:
Period for ATR calculation (default 10).
Multiplier to adjust ATR band width (default 2.0).
Pivot Settings:
Define the lookback/forward period for pivot identification (default 3).
Date Range:
Active strategy period (2018-01-01 to 2069-12-31).
2. VIDYA and ATR Bands
VIDYA is calculated based on the selected source (default: close price). The calculation incorporates:
Momentum changes to adjust the weighting of recent prices dynamically.
A smoothing factor (alpha) derived from the momentum.
3. Trend Detection
Trend Change: Triggered by price crossing the ATR bands:
If the price crosses above the upper band → Uptrend.
If the price crosses below the lower band → Downtrend.
Smoothing: A smoothed value is plotted for better trend visualization
4. Volume Analysis
Tracks cumulative volume in uptrends and downtrends:
Uptrend Volume: Volume from bullish candles during an uptrend.
Downtrend Volume: Volume from bearish candles during a downtrend.
Calculates the Delta Volume Percentage: Compares the net volume difference (uptrend - downtrend) relative to the average volume since the last trend change. Displays this as a percentage label on the chart.
5. Pivot Points
Identifies local highs and lows.
Visualizes liquidity zones: High pivots below the smoothed value are marked as potential resistance (red lines).
Low pivots above the smoothed value are marked as potential support (green lines).
6. Strategy Rules
Entry: Enter a BUY position when the trend is detected as up (price crosses above the upper band).
Exit: Close any BUY position when the trend changes to neutral or down (price crosses below the lower band).
Usage
This strategy is designed for 4-hour timeframes on BTCUSDT.
It highlights entry and exit opportunities using trend-based signals and validates trend strength with volume analysis.
Visual aids like pivot lines, ATR bands, and smoothed values enhance the trader's ability to interpret market structure and trend dynamics.
Advantages
Adapts dynamically to market conditions via VIDYA.
Incorporates volume-based metrics for additional trend confirmation.
Clear visualization aids decision-making.
Limitations
Sensitive to parameter settings (e.g., VIDYA length, ATR bands).
May generate false signals in low-volatility or sideways markets
Chande Momentum Osilatörü (CMO)
Momentum 3 EMAThis indicator is designed for quick response to momentum stocks with high volatility, following Ross Cameron’s trading style. The traditional 9 EMA often provides delayed entry & exit signals when it crosses the 20 EMA. By using faster EMAs (3-period and 20-period), this indicator enables earlier identification of trends and more timely exits, making it particularly useful for fast-paced trading strategies.
MERCURY-PRO by DrAbhiramSivprasd“MERCURYPRO”
The MERCURYPRO indicator is a custom technical analysis tool designed to provide dynamic trend signals based on a combination of the Chande Momentum Oscillator (CMO) and Standard Deviation (StDev). This indicator helps traders identify trend reversals or continuation based on the behavior of the price and momentum.
Key Features:
• Source Input: The indicator works with any price data, with the default set to close, which represents the closing price of each bar.
• Length Input: A period (default value 9) is used to determine the calculation window for the Chande Momentum Oscillator and Standard Deviation.
• Fixed CMO Length Option: Users can choose whether to use a fixed CMO length of 9 or adjust the length to the user-defined pds value.
• Calculation Method: The indicator allows switching between using the Chande Momentum Oscillator (CMO) or Standard Deviation (StDev) for the momentum calculation.
• Alpha: The smoothing factor used in the calculation of the MERCURYPRO value, which is based on the length of the period input (pds).
Core Calculation:
1. Momentum Calculation: The script calculates the momentum by determining the change in the source price (e.g., close) from one period to the next.
2. Chande Momentum Oscillator (CMO): The positive and negative momentum components are calculated and then summed over the specified period. This value is normalized to a percentage to determine the momentum strength.
3. K Value Calculation: The script selects either the CMO or Standard Deviation (depending on the user setting) to calculate the k value, which represents the dynamic price momentum.
4. MERCURYPRO Line: The final output of the indicator, MERCURYPRO, is computed using a weighted average of the k value and the previous MERCURYPRO value. The line is smoothed using the Alpha parameter.
Plot and Signal Generation:
• Color Coding: The line is color-coded based on the direction of MERCURYPRO:
• Blue: The trend is bullish (MERCURYPRO is rising).
• Maroon: The trend is bearish (MERCURYPRO is falling).
• Default Blue: Neutral or sideways market conditions.
• Plotting: The MERCURYPRO line is plotted with varying colors depending on the trend direction.
Alerts:
• Color Change Alert: The indicator has an alert condition based on when the MERCURYPRO line crosses its previous value. This helps traders stay informed about potential trend reversals or continuation signals.
Use Case:
• Trend Confirmation: Traders can use the MERCURYPRO indicator to identify whether the market is in a strong trend or not.
• Signal for Entries/Exits: The color change and crossovers of the MERCURYPRO line can be used as entry or exit signals, depending on the trader’s strategy.
Overall Purpose:
The MERCURYPRO indicator combines momentum analysis with smoothing techniques to offer a dynamic, responsive tool for identifying market trends and potential reversals. It is particularly useful in conjunction with other technical indicators to provide confirmation for trade setups.
How to Use the MERCURYPRO Indicator:
The MERCURYPRO indicator is designed to help traders identify trend reversals and market conditions. Here are a few ways you can use it:
1. Trend Confirmation (Bullish or Bearish)
• Bullish Trend: When the MERCURYPRO line is colored Blue, it indicates a rising trend, suggesting that the market is bullish.
• Action: You can consider entering long positions when the line turns blue, or holding your existing positions if you’re already long.
• Bearish Trend: When the MERCURYPRO line is colored Maroon, it signals a downward trend, indicating a bearish market.
• Action: You may consider entering short positions or closing any long positions when the line turns maroon.
2. Trend Reversal Alerts
• Color Change: The MERCURYPRO indicator changes color when there’s a trend reversal. The alert condition triggers when the MERCURYPRO crosses above or below its previous value, signaling a potential shift in the trend.
• Action: You can use this alert as a signal to monitor potential entry or exit points for trades. For example, a crossover from maroon to blue could indicate a potential buying opportunity, while a crossover from blue to maroon could suggest a selling opportunity.
3. Use with Other Indicators for Confirmation
• While the MERCURYPRO provides valuable trend insights, it’s often more effective when used in combination with other indicators like RSI (Relative Strength Index), MACD, or moving averages to confirm signals.
• Example: If MERCURYPRO turns blue and RSI is above 50, it may signal a strong bullish trend, enhancing the confidence to enter a long trade.
4. Divergence
• Watch for divergence between the MERCURYPRO line and the price chart:
• Bullish Divergence: If the price makes new lows while MERCURYPRO is showing higher lows, it suggests a potential bullish reversal.
• Bearish Divergence: If the price makes new highs while MERCURYPRO is showing lower highs, it suggests a potential bearish reversal.
Example of Use:
• Example 1: If the MERCURYPRO line changes from maroon to blue, you might enter a long position. After the MERCURYPRO line turns blue, use an alert to monitor the price action. If other indicators (like RSI) also suggest strength, your confidence in the trade will increase.
• Example 2: If the MERCURYPRO line shifts from blue to maroon, it could be a signal to close long positions and consider shorting the market if other conditions align (e.g., moving averages also turn bearish).
Warning for Using the MERCURYPRO Indicator:
1. Lagging Indicator:
• The MERCURYPRO is a lagging indicator, meaning it responds to price changes after they have occurred. This may delay entry and exit signals, and it’s crucial to combine it with other leading indicators to get timely information.
2. False Signals in Range-bound Markets:
• In choppy or sideways markets, the MERCURYPRO line can produce false signals, flipping between blue and maroon frequently without showing a clear trend. It’s important to avoid trading based on these false signals when the market is not trending.
3. Overreliance on One Indicator:
• Relying solely on MERCURYPRO can be risky. Always confirm signals with additional tools like volume analysis, price action, or other indicators to increase the accuracy of your trades.
4. Market Conditions Matter:
• The indicator may work well in trending markets, but in highly volatile or news-driven environments, it may provide misleading signals. Ensure that you take market fundamentals and external news events into consideration before acting on the indicator’s signals.
5. Risk Management:
• As with any technical indicator, MERCURYPRO is not infallible. Always use appropriate risk management techniques such as stop-loss orders to protect your capital. Never risk more than you can afford to lose on a trade.
6. Backtest First:
• Before implementing MERCURYPRO in live trading, make sure to backtest it on historical data. Test the strategy with various market conditions to assess its effectiveness and identify any potential weaknesses.
By considering these guidelines and warnings, you can use the MERCURYPRO indicator more effectively and mitigate potential risks in your trading strategy.
MTF RSI+CMO PROThis RSI+CMO script combines the Relative Strength Index (RSI) and Chande Momentum Oscillator (CMO), providing a powerful tool to help traders analyze price momentum and spot potential turning points in the market. Unlike using RSI alone, the CMO (especially with a 14-period length) moves faster and accentuates price pops and dips in the histogram, making price shifts more apparent.
Indicator Features:
➡️RSI and CMO Combined: This indicator allows traders to track both RSI and CMO values simultaneously, highlighting differences in their movement. RSI and CMO values are both plotted on the histogram, while CMO values are also drawn as a line moving through the histogram, giving a visual representation of their relationship. The often faster-moving CMO accentuates short-term price movements, helping traders spot subtle shifts in momentum that the RSI might smooth out.
➡️Multi-Time Frame Table: A real-time, multi-time frame table displays RSI and CMO values across various timeframes. This gives traders an overview of momentum across different intervals, making it easier to spot trends and divergences across short and long-term time frames.
➡️Momentum Chart Label: A chart label compares the current RSI and CMO values with values from 1 and 2 bars back, providing an additional metric to gauge momentum. This feature allows traders to easily see if momentum is increasing or decreasing in real-time.
➡️RSI/CMO Bullish and Bearish Signals: Colored arrow plot shapes (above the histogram) indicate when RSI and CMO values are signaling bullish or bearish conditions. For example, green arrows appear when RSI is above 65, while purple arrows show when RSI is below 30 and CMO is below -40, indicating strong bearish momentum.
➡️Divergences in Histogram: The histogram can make it easier for traders to spot divergences between price and momentum. For instance, if the price is making new highs but the RSI or CMO is not, a bearish divergence may be forming. Similarly, bullish divergences can be spotted when prices are making lower lows while RSI or CMO is rising.
➡️Alert System: Alerts are built into the indicator and will trigger when specific conditions are met, allowing traders to stay informed of potential entry or exit points based on RSI and CMO levels without constantly monitoring the chart. These are set manually. Look for the 3 dots in the indicator name.
How Traders Can Use the Indicator:
💥Identifying Momentum Shifts: The RSI+CMO combination is ideal for spotting momentum shifts in the market. Traders can monitor the histogram and the CMO line to determine if the market is gaining or losing strength.
💥Confirming Trade Entries/Exits: Use the real-time RSI and CMO values across multiple time frames to confirm trades. For instance, if the 1-hour RSI is above 70 but the 1-minute RSI is turning down, it could indicate short-term overbought conditions, signaling a potential exit or reversal.
💥Spotting Divergences: Divergences are critical for predicting potential reversals. The histogram can be used to spot divergences when RSI and CMO values deviate from price action, offering an early signal of market exhaustion.
💥Tracking Multi-Time Frame Trends: The multi-time frame table provides insight into the market’s overall trend across several timeframes, helping traders ensure their decisions align with both short and long-term trends.
RSI vs. CMO: Why Use Both?
While both RSI and CMO measure momentum, the CMO often moves faster with a value of 14 for example, reacting to price changes more quickly. This makes it particularly effective for detecting sharp price movements, while RSI helps smooth out price action. By using both, traders get a clearer picture of the market's momentum, particularly during volatile periods.
Confluence and Price Fluidity:
One of the powerful ways to enhance the effectiveness of this indicator is by using it in conjunction with other technical analysis tools to create confluence. Confluence occurs when multiple indicators or price action signals align, providing stronger confirmation for a trade decision. For example:
🎯Support and Resistance Levels: Traders can use RSI+CMO in combination with key support and resistance zones. If the price is nearing a support level and RSI+CMO values start to signal a bullish reversal, this alignment strengthens the case for entering a long position.
🎯Moving Averages: When the RSI+CMO signals a potential trend reversal and this is confirmed by a crossover in moving averages (such as a 50-day and 200-day moving average), traders gain additional confidence in the trade direction.
🎯Momentum Indicators: Traders can also look for momentum indicators like the MACD to confirm the strength of a trend or potential reversal. For instance, if the RSI+CMO values start to decrease rapidly while both the RSI+CMO also shows overbought conditions, this could provide stronger confirmation to exit a long trade or enter a short position.
🎯Candlestick Patterns: Price fluidity can be monitored using candlestick formations. For example, a bearish engulfing pattern with decreasing RSI+CMo values offers confluence, adding confidence to the signal to close or short the trade.
By combining the MTF RSI+CMO PRO with other tools, traders ensure that they are not relying on a single indicator. This layered approach can reduce the likelihood of false signals and improve overall trading accuracy.
Chande Momentum Oscillator (CMO) Buy Sell Strategy [TradeDots]The "Chande Momentum Oscillator (CMO) Buy Sell Strategy" leverages the CMO indicator to identify short-term buy and sell opportunities.
HOW DOES IT WORK
The standard CMO indicator measures the difference between recent gains and losses, divided by the total price movement over the same period. However, this version of the CMO has some limitations.
The primary disadvantage of the original CMO is its responsiveness to short-term volatility, making the signals less smooth and more erratic, especially in fluctuating markets. This instability can lead to misleading buy or sell signals.
To address this, we integrated the concept from the Moving Average Convergence Divergence (MACD) indicator. By applying a 9-period exponential moving average (EMA) to the CMO line, we obtained a smoothed signal line. This line acts as a filter, identifying confirmed overbought or oversold states, thereby reducing the number of false signals.
Similar to the MACD histogram, we generate columns representing the difference between the CMO and its signal line, reflecting market momentum. We use this momentum indicator as a criterion for entry and exit points. Trades are executed when there's a convergence of CMO and signal lines during an oversold state, and they are closed when the CMO line diverges from the signal line, indicating increased selling pressure.
APPLICATION
Since the 9-period EMA smooths the CMO line, it's less susceptible to extreme price fluctuations. However, this smoothing also makes it more challenging to breach the original +50 and -50 benchmarks.
To increase trading opportunities, we've tightened the boundary ranges. Users can customize the target benchmark lines in the settings to adjust for the volatility of the underlying asset.
The 'cool down period' is essentially the number of bars that await before the next signal generation. This feature is employed to dodge the occurrence of multiple signals in a short period.
DEFAULT SETUP
Commission: 0.01%
Initial Capital: $10,000
Equity per Trade: 80%
Signal Cool Down Period: 5
RISK DISCLAIMER
Trading entails substantial risk, and most day traders incur losses. All content, tools, scripts, articles, and education provided by TradeDots serve purely informational and educational purposes. Past performances are not definitive predictors of future results.
Savitzky-Golay Filtered Chande Momentum OscillatorThe Savitzky-Golay Filtered Chande Momentum Oscillator (SGCMO) is a modified version of the Chande Momentum Oscillator that functions as a powerful analytical tool, capable of detecting trends and mean reversals. By applying a Savitzky-Golay filter to the price data, the oscillator provides enhanced visualization and smoother readings. (credit to © anieri for the Savitzky-Golay filter code: www.tradingview.com)
Chande Momentum Oscillator
The Chande Momentum Oscillator (CMO) is a technical indicator developed by Tushar Chande. It measures the momentum of an asset's price movement and provides insights into the overbought or oversold conditions of the market. The CMO calculates the difference between the sum of positive price changes and the sum of negative price changes over a specified period, and then normalizes it to a scale between -100 and +100. Traders and investors use the CMO to identify potential trend reversals, confirm the strength of a current trend, and generate buy or sell signals.
Smoothing
The Savitzky-Golay filter is a digital filter commonly employed for smoothing and noise reduction in time-series data. In the context of the SGCMO, the aim is to effectively smooth the CMO values, reducing the impact of short-term fluctuations and providing clearer insights into underlying trends. Additionally, an exponential moving average (EMA) filter is applied to further reduce noise and enhance trend visibility. This filtered CMO indicator may provide traders and investors with a clearer and more refined representation of momentum changes in the underlying asset, helping them make more informed trading decisions.
Application
The SGCMO serves as both a trend-following and mean-reversion tool. Traders can track the current trend using bullish white lines or bearish orange lines in trending markets. Alternatively, they can utilize green and red vertical lines, which indicate price retracement and help capture pullbacks and reversals. Green vertical lines appear when the trend reverses upwards in an oversold zone (-50 to -80), while red vertical lines indicate negative trend reversals in an overbought zone (50 to 80). Opening long positions when green and white lines appear, or short positions when red and orange lines are visible, can be considered. However, it is advisable to combine this indicator with other complementary technical analysis tools and incorporate it into a comprehensive trading strategy to maximize its effectiveness.
CMO with ATR and LagF Filtering - RevNR - 12-27-22Rev NR of the CMO ATR, with LagF Filtering - Released 12-27-22 by @Hockeydude84
This code takes Chande Momentum Oscillator (CMO), adds a coded ATR option and then filters the result through a Laguerre Filter (LagF) to reduce erroneous signals.
This code also has an option for self adjusting alpha on the Lag, via a lookback table and monitoring the price rate of change (ROC) in the lookback length.
Faster ROC will allow the LagF to move faster, slower price action will slow down LagF reaction. Pausing of signals is also present based on Rate of Change of the LagF Curve
Aggressive signals and Base signaling is allowed - aggressive bases signals on increase/decrease of previous LagF curve value point, Base is greater or less than 0
Original Code credits; Lost some of this due to time and multiple script manipulations, I believe the CMO origin code is from @TradingView House Code, and the LagF from @KıvançÖzbilgiç
CMOChande Momentum Oscillator with Overbought and Oversold value
If it is above 25 then enter the trade
and if goes below -25 then exit from the trade
Amazing Oscillator MTF MulticolorIngles
The amazing multitemporal oscillator, allows you to see in a single graph the Waves that move the market in different temporalities, that is, you will be able to see the market trend, the impulse movement, the forced movement, and the entry and exit points, as well as also how both collide with each other, to understand why the smaller waves succumb to the impulse of the larger waves.
Elliot already described them as such, in his legacy of the Elliot waves and their different sub-waves, just as Wycoff spoke of the theory of effort and result.
Español:
El oscilador asombroso multitemporal, permite ver en una sola grafica las Ondas que mueven el mercado en diferentes temporalidades, es decir, podrás ver la tendencia del mercado, el movimiento de impulso, el movimiento de fuerza y los puntos de entrada y salida, así como también como ambos chocan entre si, para entender porque las ondas mas pequeñas sucumben al impulso de las ondas de mayor tamaño.
Ya Elliot las describía como tal, en su legado de las ondas de Elliot y sus diferentes sub-ondas, al igual que Wycoff hablaba de la teoría de esfuerzo y resultado.
CT Reverse Chande Momentum OscillatorIntroducing the Caretakers Reverse Chande Momentum Oscillator.
The Chande momentum oscillator is a technical momentum indicator which calculates the difference between the sum of recent gains and the sum of recent losses and then divides the result by the sum of all price movement over the same period.
It is used to gauge “pure momentum”.
It bears similarities to other momentum indicators such as the Stochastic, Rate of Change and the Relative Strength Index, but other unique features render it a handy tool in the traders handset.
The CMO was developed by Tushar Chande.
The author introduced the indicator in his 1994 book “The New Technical Trader “.
The CMO has a normal range of values between +100 and -100.
I have reverse engineered the CMO formula to derive a dual purpose function.
The function can calculate the chart price at which the CMO will reach a particular CMO scale value.
The function can also calculate the chart price at which the CMO will equal its previous value.
I have employed this function here to give the price level where the CMO will equal :
Upper alert level ( default 50 )
Zero-Line
Lower alert level ( default -50 )
Previous CMO value
These crossover levels are displayed via an optional infobox with choice of user selected info.
The advantage of knowing the exact prices that this will happen should give the user an additional edge and precision in risk management.
Traditionally traders and analysts will consider:
Positives values above 50 indicate an “overbought” condition
Negative values below -50 indicate an “oversold” condition
Common traditional ways to derive signals from the CMO :
When the CMO crosses above the zeroline, a buy signal is generated.
When the CMO crosses below the zeroline, a sell signal is generated.
When the SMI crosses below -50 and then moves back above it, a buy signal is generated.
When the SMI crosses above +50 and then moves back below it, a sell signal is generated.
Traditionally, traders also look for divergences between the CMO and price action.
Chande Momentum oscillating in a narrower band around the zero line, with no penetration of the Overbought and Oversold levels indicates a ranging market.
This should not be confused with Chande Momentum oscillating between either the Overbought and the zero line, or the Oversold level and the zero line, which indicates a strong up, or down-trend.
It is traditionally considered that the strongest trend signals are from failed swing patterns.
It measures momentum on both up and down days and does not smooth results, triggering more frequent oversold and overbought penetrations.
The CMO is often used to determine overall market trendiness in conjunction with the SMI where the SMI is used to determine the direction of the trend, and also with volume indicators to show if the momentum carries significant selling or buying pressure.
Chande Momentum Strat (Crossover)This is a Chande Momentum strategy that buys and sells when the line crosses the buy and sell lines. Different signal then the other Chande Momentum strategy. In my opinion they both work better at different time frames and possibly commodities.
Chande Momentum Oscillator - Alerts and RegionsIt seemed weird to me that the default Chande didn't have overbought and oversold regions, despite them being described for Chande Momentum and working very well. So I added the lines and alert conditions. I've used this to very good results in my day trading.
My strategy involved 4 timeframes of candlestick, each with 4 timeframes of Chande overlaid. Candlesticks are 5 min, 20 min, 80 min, 320 min and Chandes are x1, x2, x4 and x8 of the relevant time zone. Give it a shot. Use the 5 min Chande as Buy and Sell signal with the other timeframes for trend confirmation. You may get a lot of extra alerts with this setup, but it's almost impossible to really miss an opportunity if you use it right. It will take up all your free time though, as a warning. Using this strat made me go crazy.
Use the chande crossing over the lines as the signal, not just being in the region, as that will make you buy early.
Accumulation and Distribution MomentumThis applies Chande Momentum to Accumulation and Distribution index as a means to changes.
Experimental oscillator.
Compare it to both Money Flows, Acc/Dis and Chande and you notice it has elements of all of them. Could potentially replace other volume based momentum indicators in your strategy.
It is a little more volatile, reaching from side to side, while having a tendency to lean towards the side that gets the most action over a longer period of time.
It also tends to reach and hang in oversold regions BEFORE a pump - something I noticed.
Could be used as an early warning sign as well as for overall trend analysis.
Chande Momentum Oscillator + WaveTrend Oscillator [ChuckBanger]This is a combination of Lazybears WaveTrend Oscillator (purple line) and Chande Momentum Oscillator (blue line with the orange line as a signal line). Use WaveTrend as a confirmation tool. It is consider as a selling point when CMO is over the red horizontal dotted line. The opposite applies if CMO line is under the red horizontal dotted line.
You can also use this with WaveTrand to confirm the sell or buy point. When WT line is over center line and CMO has crossed over it's signal line. It is a buy point. The opposite applies if WT line is under the center line and CMO is under its signal line.
Aroon Histogram + CMO [ChuckBanger]This is a combination of Aroon and Chande Momentum Oscillator . I made a histogram of Aroon , aqua line is Chande Momentum and the orange line are a simple moving average of Chande Momentum as a signal line.
One strategy you can use this for is to buy or sell when the signal line crosses the CM line or you can buy and sell when CM line is highest or lowest
You should also study how the indicators work separately:
Aroon Oscillator
www.investopedia.com
Chande Momentum Oscillator
www.investopedia.com
Momentum TraderThis study combines two versatile momentum indicators :
Chande Momentum Oscillator:
-Measures trend strength, with higher absolute values meaning greater strength.
-Also tracks divergence. When price increases, but is not accompanied by an increase in Chande Momentum Oscillator values, it signifies bearish divergence and a reversal is likely to follow.
-Shown as the teal and pink histogram.
Percentage Price Oscillator:
-Similar to the MACD, except that it expresses the difference between the two moving averages in terms of a percentage. This makes it a little easier to visualize.
-PPO values greater than zero indicate an uptrend, as that means the fast EMA is greater than the slow (and vice versa).
Entry and Exit Conditions:
Enter When:
1) Chande Momentum crosses over zero from negative to positive territory. AND
2) It has been less than 3 bars since Chande Momentum was less than the lower green line. AND
3) Chande Momentum is rising(positive slope).
Exit When:
1) Chande Momentum is greater than the upper line. AND
2) It has been less than 6 bars since the PPO value was greater than the upper bound. AND
3) PPO is less than 5 (meaning the difference between the two EMA's is less than 5%). AND
4)PPO has a negative slope.
This study comes with alert conditions for long entries and exits.
~Happy Trading~
StochCMO - Stochastic CMO [SHK]StochCMO is the combination of Stochastic and CMO (Chande Momentum Oscillator).
The StochCMO is an indicator used in technical analysis that ranges between zero and one and is created by applying the Stochastic Oscillator formula to a set of Chande Momentum Oscillator (CMO) values rather than standard price data. Using CMO values within the Stochastic formula gives traders an idea of whether the current CMO value is overbought or oversold - a measure that becomes specifically useful when the CMO value is confined between its signal levels of 20 and 80.
Usage:
The usage of StochCMO is similar to StochRSI.
StochCMO vs StochRSI:
The difference between these indicators can be realized by comparing CMO & RSI:
CMO is similar to the Relative Strength Index (RSI) except that it measures momentum on both up days and down days. The CMO also does not use internal smoothing and thus does not obscure short-term extremes in momentum. As a result, the CMO often reaches over bought and over sold areas more regularly than momentum indicators, such as the RSI, that have internal smoothing.
Hope it helps you.
Chande Momentum OscillatorChande Momentum Oscillator script.
This indicator was developed and described by Tushar S. Chande and Stanley Kroll in their book "The New Technical Trader" (1994, Chapter 5: New Momentum Oscillators).
CMO_EMA (Chande Momentum Oscillator and EMA)
The absolute value of "CMO" alone makes it impossible to know the current location for the waves and there is a possibility of doing useless entry.
To prevent this, display EMA.
CMO_EMA (Chande Momentum Oscillator and EMA)The absolute value of "CMO" alone makes it impossible to know the current location for the waves and there is a possibility of making useless entries.
In order to prevent this, display EMA.
CMOfilt BacktestThis indicator plots a CMO which ignores price changes which are less
than a threshold value. CMO was developed by Tushar Chande. A scientist,
an inventor, and a respected trading system developer, Mr. Chande developed
the CMO to capture what he calls "pure momentum". For more definitive
information on the CMO and other indicators we recommend the book The New
Technical Trader by Tushar Chande and Stanley Kroll.
The CMO is closely related to, yet unique from, other momentum oriented
indicators such as Relative Strength Index, Stochastic, Rate-of-Change, etc.
It is most closely related to Welles Wilder`s RSI, yet it differs in several ways:
- It uses data for both up days and down days in the numerator, thereby directly
measuring momentum;
- The calculations are applied on unsmoothed data. Therefore, short-term extreme
movements in price are not hidden. Once calculated, smoothing can be applied to the
CMO, if desired;
- The scale is bounded between +100 and -100, thereby allowing you to clearly see
changes in net momentum using the 0 level. The bounded scale also allows you to
conveniently compare values across different securities.
You can change long to short in the Input Settings
Please, use it only for learning or paper trading. Do not for real trading.
