Chande Momentum Oscillator Metatrader 5 Forex Indicator
CMO is short for Chande Momentum Oscillator, and just as the name implies, it is a Metatrader 5 forex indicator that uses smoothed price for its calculations.
This invariably enhances the indicator’s ability to filter trend direction.
Tushar Chande developed the Chande Momentum Oscillator, in order to further explain momentum.
In his book “The New Technical Trader: Boost Your Profit by Plugging into the Latest Indicators”, Chande discussed the CMO and a couple other technical tools.
The CMO Metatrader 5 custom forex indicator range from -100 to +100.
Overbought and oversold market conditions are represented by values above +50 and below -50 respectively.
The USD/JPY H4 chart below displays the CMO Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the light sea green shade of the CMO Metatrader 5 forex indicator breaks above the zero level.
Sell Signal: Go short when the dark orange shade of the CMO Metatrader 5 forex indicator breaks below the zero level.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the light green shade of the CMO MT5 fx indicator falls below the +50.00 level, after hovering above it.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the dark orange shade of the CMO MT5 fx indicator surges above the -50.00 level, after hovering below the level.
Tips: The CMO Metatrader 5 custom forex indicator should be combined with trend tools to make the best out of it.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (Period, Smoothing method, Applied price, Horizontal shift in bars), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the cmo.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)