Kairos™

CMO - Chande Momentum Oscillator

The Chande Momentum Oscillator (CMO) is a modified RSI.  Where the RSI divides the upward movement by the net movement (up / (up + down)), the CMO divides the total movement by the net movement ((up - down) / (up + down)).

There are several ways to interpret the CMO.  Values over 50 indicate overbought conditions, while values under -50 indicate oversold conditions.  High CMO values indicate strong trends.  When the CMO crosses above a moving average of the CMO, it is a buy signal, crossing down is a sell signal.

The Chande Momentum Oscillator(CMO)  on the daily chart Timeframe, Period = 14

Chande Momentum Oscillator(CMO) on the daily chart