DSL Chande Momentum Oscillator - Smoothing - MetaTrader 5 Script - MT4/MT5 Resources

The Chand Momentum Oscillator is a technical momentum indicator invented by Tushar Chand. Chande proposed this indicator in the book "New Technology Trader" in 1994. It is created by calculating the difference between the sum of all recent gains and the sum of all recent gains, and then dividing the result by the sum of all price movements during the period.

The Chandler momentum oscillator formula is:

CMO is often used with static levels (usually levels -50 and +50), but this approach lacks flexibility and often lags. This version understands trends by adding interrupted signal lines instead of using static levels. Additionally, since the "raw" CMO is far from smooth and tends to produce too much signal, smoothing needs to be added. The smoothing used is applied to the price before it is used in the calculation so that the lag is minimal, and the resulting result now eliminates a lot of the false signals present in the original calculation.

PS: To get "original" CMO, set the smoothing period to <= 1.

Attachment download

📎 dsl_-_cmo_2.mq5 (10.93 KB)

Source: MQL5 #22649