Chande Momentum Oscillator
The Chande Momentum Oscillator (CMO), developed by Tushar Chande, is an advanced momentum oscillator derived from linear regression. This indicator was published in his book titled “New Concepts in Technical Trading” in the mid 90’s.
The CMO enters into overbought territory at +50, and oversold territory at -50. You can also create buy/sell triggers based on a moving average of the CMO. Also, increasingly high values of CMO may indicate that prices are trending strongly upwards. Conversely, increasingly low values of CMO may indicate that prices are trending strongly downwards.
set BUY = CMO(CLOSE, 14) > 48
Evaluates to buy when the CMO of the close is overbought.