Chande Momentum Oscillator
Overview
The Chande Momentum is a technical momentum oscillator invented by Tushar Chande. The indicator calculates the difference between the total of all recent gains and the total of all recent losses and then dividing the results by the total of all price movement over the period.
When the oscillator is above +50 the chart is considered overbought, and oversold when below -50. Confirmation is considered when it crosses above or below 0.
Calculation:
CM = ((DU - DD)/ (SU + DD)) x 100
Where:
DU = Sum of the difference between the current close and previous close on up days for the specified period. Up days are days when the close is greater than the previous close.
DD = Sum of the absolute value of the difference between the current close and the previous close on down days for the specified period. Down days are days when the close is less than the previous close.
To add the tool to your chart, select the tool from the Price tool group, and left-click on the chart to add the tool. Optuma will then draw the tool in a window below the chart using the default settings.
Scripting Function: MOMENTUM()
To use the Chande Momentum in a scripting formula use the MOMENTUM() function with the Type set to Chande. This example will identify when the 20 period oscillator crosses above 0:
MOMENTUM(TYPE=Chande, BARS=20) CrossesAbove 0<br></br>
Actions & Properties
Actions
Copy Data to Clipboard: Will copy the tool’s values to the clipboard which can then be inserted into a spreadsheet, for example, allowing for further analysis.
Add to Toolbar: Adds the selected tool to your custom toolbar.
Apply Settings to All: When multiple Chande Momentum Oscillator tools have been applied to a chart, page or workbook, this action can be used to apply the settings of the one selected to other instances of the tool. This is a great time saver if an adjustment is made to the tool - such as line colour - as this allows all the other Chande Momentum Oscillator tools in the chart, page or entire workbook to be updated instantly.
Copy Tool: Allows you to copy the selected tool, which can then be pasted onto a different chart window.
Move to Back: If the tool is displaying in front of other tools or indicators clicking this action will move the tool view to the background.
Move to Front: If the tool is displaying behind other tools or indicators on the chart, clicking this action will bring the tool to the forefront.
Restore Default Settings: Click this action if you have adjusted the default settings of the tool, and wish to return to the standard properties originally installed with Optuma.
Save Settings as Default: If you have adjusted any of the tool’s properties (colour, for example) you can save the adjustments as your new default setting. Each time you apply a new Chande Momentum Oscillator to a chart, the tool will display using the new settings.
Delete: Deletes the tool from the chart.
Properties
Tool Name: Allows you to adjust the name of the tool, as it’s displayed in the Structure Panel.
Bars: Allows you to increase or decrease the number of bars that are used in the calculation.
Price Using: Allows you to change the value that the tools used for its calculation, you can choose between Open, High, Low or Close.
Plot Style: This option expands to show the following:
- Plot Style - Allows you to change how the Chande Momentum is displayed on your chart. There are 6 options available: Line, Dot, Histogram, Step, Shaded, Shaded Step.
- Line Style - The Line Style property allows you to adjust the type of the line displayed. There are 8 options available: Solid, Dots, Dash, Dash Dots, Long Dash, Long Dash Dot, Long Dash Dot Dot, Stippled.
- Line Width - Allows you to adjust the width of the lines. Moving the slider bar to the right increases the thickness of the line.
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Line Colour - Allows you to select the colour of the line. Clicking on the drop down arrow will display a colour swatch. Locate the desired colour and left-click it once to select it.
Zero Line Style: This option expands to show the following:
- Line Style - The Line Style property allows you to adjust the type of the line displayed. There are 8 options available: Solid, Dots, Dash, Dash Dots, Long Dash, Long Dash Dot, Long Dash Dot Dot, Stippled.
- Line Width - Allows you to adjust the width of the lines. Moving the slider bar to the right increases the thickness of the line.
- Line Colour - Allows you to select the colour of the line. Clicking on the drop down arrow will display a colour swatch. Locate the desired colour and left-click it once to select it.
- Transparency - Use this slider bar to adjust the transparency of the Zero Line. Moving the slider to the left will increase the transparency of the Zero Line.
- Visible - When deselected the Zero Line will not be displayed
Offset: This provides the option to offset the Chande Momentum from the chart, to adjust the offset value use the blue up and down arrows.
Tool Transparency: Use this slider bar to adjust the transparency of the tool. Moving the slider to the left will increase the transparency of the tool.
Visible: Un-tick this checkbox to hide the tool from the chart.
Show In Price Scale: When selected the current Chande Momentum value will be displayed in the Price Scale.