Currency System Analysis, Vol. 2

In his book The New Technical Trader (John Wiley & Sons, 1994), Tushar Chande introduced the Chande Momentum Oscillator (CMO), a momentum indicator that ranges between +100 and -100 and has default overbought and oversold levels of +50 and -50, respectively.

The Trading System Lab in the December 2003 issue of Active Trader magazine incorporated a daily CMO in the equity market. This test applies a 14-period CMO on intraday forex data (2,500 hourly bars).