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Chande Momentum Oscillator (CMO)

The CMO is an indicator created by Tushar Chande to identify changes in a security's trend. It measures the rate of change of prices on a daily or periodic basis.

Price above and the Chande Momentum Oscillator below, between plus and minus 100, with the band between plus and minus 20 marked as consolidation.
CMO runs from minus 100 to plus 100; readings between minus 20 and plus 20 suggest consolidation.

It yields a value between +100 and -100. The higher the value above 0, the stronger the bullish sentiment; the same applies in the negative.

Interpretation: consecutive extreme values possible new trend in progress. Values between +20 and -20: likely consolidation or period of low volatility.

The CMO can be used to identify oversold or overbought levels in the market.

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