GlossaryAdvanced
Chande Momentum Oscillator (CMO)
A momentum oscillator, similar to RSI, calculated directly from the sum of gains and losses without RSI's internal smoothing step.
The Chande Momentum Oscillator (CMO), developed by Tushar Chande, is conceptually similar to RSI — both measure recent gains against recent losses — but CMO is calculated directly from the raw sum of gains and losses over the period, without RSI's internal smoothing step, and oscillates between -100 and +100 rather than RSI's 0-to-100 scale.
The absence of internal smoothing makes CMO somewhat more responsive, and correspondingly noisier, than RSI over the same lookback period. See Kaavon's dedicated CMO article for the full calculation.
Examples
- CMO's -100-to-+100 scale, centered on zero, is a direct structural difference from RSI's 0-to-100 scale.
- CMO's lack of internal smoothing, compared to RSI's Wilder's-smoothing-based calculation, is what makes it react somewhat faster to new price changes.