Chande Momentum Indicator in MT4 Download - Free - [TFlab]

The Chande Momentum Oscillator (CMO), similar to other oscillators such as RSI and MACD, helps identify overbought and oversold conditions in MetaTrader 4.

Unlike other indicators that compare average prices over different periods, this oscillator measures price changes over specific periods. It offers traders a clear view of the speed and intensity of price trends.

Indicator Table

Indicator in Uptrend

On the hourly chart of the USD/CHF currency pair, the price approaches oversold levels after a downward movement, signaling seller weakness and buyer dominance.

In such cases, the Chande Momentum Oscillator oscillates between -50 and -100, indicating a possible price reversal upwards.

Traders can seek confirmation and look for opportunities to enter Buy trades.

Indicator in Downtrend

In the 30-minute timeframe of the CAD/JPY currency pair chart, after a downward trend, the price reaches oversold levels, indicating reduced selling pressure and potential reversal or correction upwards.

Under these conditions, traders may seek reversal signals or clues to identify potential trading opportunities as the downward momentum slows.

Indicator Settings

• Chart Theme :Background settings for the indicator;
• Period: The number of candlesticks used in calculations (default: 14).

Conclusion

The Chande Momentum Oscillator (CMO) in MetaTrader 4 is a valuable tool for identifying the speed and strength of market trends. This indicator oscillates within the range of +100 to -100, assisting traders in detecting overbought and oversold conditions.

When the value approaches +100, it indicates a high probability of overbought conditions, and when it nears -100, it suggests a high probability of oversold conditions. With these features, traders can utilize this indicator as a tool for entering or exiting trades.