Chande Momentum Oscillator (CMO)
factor.formula
Positive Change Value (CZ1) =
CZ1 represents a positive price change for the day. If the closing price for the day is higher than the closing price for the previous day, it is equal to the difference between the two; otherwise it is 0. This value captures the strength of the price increase.
Negative Change Value (CZ2) =
CZ2 represents a negative price change for the day. If the closing price for the day is lower than the closing price for the previous day, it is equal to the absolute value of the difference; otherwise it is 0. This value captures the strength of the price decline.
The sum of positive changes in N days (SU(N)) =
SU(N) represents the sum of CZ1 in the past N days, that is, the sum of the price increases in the past N days. It reflects the accumulation of bullish power during this period.
Total negative change in N days (SD(N)) =
SD(N) represents the sum of CZ2 in the past N days, that is, the sum of price declines in the past N days. It reflects the accumulation of short forces during this period.
Chande Momentum Oscillator (CMO) =
CMO is calculated by dividing the difference between the sum of the price increases over the past N days (SU(N)) and the sum of the price decreases over the past N days (SD(N)) by their sum, and multiplying by 100, thus scaling the result to a range of -100 to 100. This value reflects the relative strength of long and short forces.
Default parameter values:
N represents the lookback period used when calculating CMO, and the default value is 20. Investors can adjust the lookback period according to their own needs and market characteristics.
Among them, CLOSE represents the closing price of the day, CLOSE[1] represents the closing price of the previous day, ABS() represents the absolute value, and SUM() represents the sum function.
- :
Closing price of the day
- :
Previous day's closing price
- :
Absolute value function
- :
Sum function
factor.explanation
The Chande Momentum Oscillator (CMO) has a value range of -100 to 100. When the CMO value is close to 100, it indicates that the market is overbought and the price may be corrected; when the CMO value is close to -100, it indicates that the market is oversold and the price may rebound. Generally speaking, a CMO greater than 50 is considered an overbought signal, and a CMO less than -50 is considered an oversold signal. However, in actual applications, investors should flexibly adjust the overbought and oversold thresholds according to the specific situation and the characteristics of the market, and make a comprehensive judgment in combination with other technical indicators and analysis methods.