Chande's Momentum Oscillator [CMO]

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The Chande's Momentum Oscillator function determines the momentum of price data by comparing the size of recent negative price changes to the size of recent positive price changes. Parameters ------------------ Close         The data to use in the calculation. This is typically a field in a data series or a calculated value. Period        The number of bars of data to include in the calculation, not including the current value.                   For example, a period of 3 compares the current value with the value three bars ago. Function Value ------------------------ This function determines the momentum of price data by comparing the size of negative price changes to the size of positive price changes. The value resultant value is normalized from -100 to 100 where negative values indicate larger negative cumulative price changes and positive values indicate larger positive cumulative price changes. Usage ----------- Momentum indicators are useful for determining trends in data. This indicator can be used as an overbought/oversold indicator. As a general rule, a security is considered to be overbought if this indicator is greater than 50 and oversold if this indicator is less than 50. These values correspond to the 70/30 levels associated with the Relative Strength Index. It can also be used to determine the degree to which a security is trending. The higher the absolute value of this indicator, the more that prices have changed in a given direction. Source ------------ This indicator is based on the book "The New Technical Trader" by Tushar Chande and Stanley Kroll.