The Chande Momentum Oscillator (CMO) indicator for MetaTrader 4 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 Index, Stochastic and Rate of adjustment, but its improved and absolute features makes it an advantageous mechanism in the trader’s field.
1. This forex indicator can be utilized in any currency pairs.
2. The endorsed platform for utilizing the indicator is MetaTrader 4.
3. Variable (Length, Price), Colors, width & Style are the endorsed customized options for this indicator.
4. The recommended time frame is five minutes, fifteen minutes, thirty minutes, one hour, four hours, one day, one week or one month.
5. Chart window indicator, trend and momentum oscillator the recommended types for utilizing the indicator.
The sole 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 comprehend; with its accounts held up in a band in the midst of the -100 and +100, which makes its study quite identical to the Relative Strength price level.
As such readings on top of the fifty are considered as being over purchased, while figures beneath negative fifty represents an over auctioned condition. As we all know, over auctioned and over purchased conditions tend to pave the approach for price adjustments, thereby yielding entry signals.
There are circumstances in the market where forex traders tend to utilize the CMO_v1 indicator to validate potential trends. Forex traders tend to launch placements when the CMO_v1 indicator has a high count and exit such placement(s) when the indicator shifts beneath a specific threshold.
If a foreign pair’s price action or another fundamental analysis describes trend, but the CMO_v1 indicator adjusts a rough or alongside market (when the CMO_v1 values range between -25 and 25), it is a signal describing a reduction 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.