Chande Momentum Oscillator

The Chande Momentum Oscillator (CMO) is a momentum indicator developed by Tushar Chande that measures the momentum of a security's price by comparing the sum of recent up-days' gains to the sum of recent down-days' losses, expressed on a scale of -100 to +100. A CMO near +100 indicates strong upward momentum (all recent sessions closed higher); near -100 indicates strong downward momentum. Unlike RSI, which uses smoothed averages, CMO uses raw data, making it more reactive to recent price changes. Readings above +50 are considered overbought; below -50 are considered oversold. The CMO is also used to measure trend strength — values near zero indicate a lack of trend (sideways market), which can inform traders when to apply range-trading versus trend-following strategies.