The Chande Momentum Oscillator is a technical momentum indicator invented by Tushar Chande. The author introduced the indicator in his 1994 book “The New Technical Trader “. The formula calculates the difference between the sum of recent gains and the sum of recent losses and then divides the result by the sum of all price movement over the same period.
This oscillator is similar to other momentum indicators such as Wilder’s Relative Strength Index (Wilder’s RSI) and the Stochastic Oscillator. It measures momentum on both up and down days and does not smooth results, triggering more frequent oversold and overbought penetrations. The indicator oscillates between +100 and -100.