The Chande Momentum Oscillator (CMO) indicator for MetaTrader 4 platform was created by Tushar Chande and is utilized in measuring “pure momentum.”
The CMO_v1 indicator is fairly identical to momentum indicators like the Relative Strength price level, Stochastic and Rate of adjustment, but its expanded and limited features makes it a useful mechanism in the forex trader’s field.
- The forex indicator can be utilized in any currency pairs.
- The endorsed platform for utilizing the indicator is MetaTrader 4.
- Variable (Length, Price), Colors, width & Style are the endorsed customized options.
- The recommended time frame is five minutes, fifteen minutes, thirty minutes, one hour, four hours, one day, one week or one month.
- Chart window indicator, trend and momentum oscillator are the types for utilizing this indicator.
The exclusive aim for the CMO_v1 indicator is in being able to identify over purchased and over auctioned conditions in the market. The indicator is fairly simple to understand; with its readings held up in a line in the midst of negative one hundred and positive one hundred, which makes its study fairly identical to the Relative Strength price level.
As such readings on top of the fifty are contemplated as being over purchased, while figures beneath negative fifty considered an over auctioned condition. As we are all familiar, over auctioned and over purchased conditions tend to lead the way for price adjustments, thereby producing entry signals.
There are circumstances in the market where forex traders tend to utilize the CMO_v1 indicator to verify promising trends. Traders tend to begin positions when the CMO_v1 indicator has a high account and exit such placement(s) when the indicator shifts beneath a specific threshold.
If a foreign exchange pair’s price action or another fundamental analysis anticipates trend, but the CMO_v1 indicator affirms a rough or side by side market (when the CMO_v1 values range between -25 and 25), it is a signal indicating a deficiency of momentum.
Utilize this forex Indicator at your own risk. WindsorForex.com cannot be responsible for any losses associated with utilizing any forex indicator presented on the site. It’s not recommended to utilize this indicator on the real account without testing it on demo first.
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