Chande Momentum Oscillator (CMO)

CMO is a momentum oscillator developed by Tushar Chande that measures the difference between the sum of gains and sum of losses over a period, normalized by their total: CMO = 100 × (Sum of Gains - Sum of Losses) / (Sum of Gains + Sum of Losses). Unlike RSI which uses averages, CMO uses raw sums making it more responsive. CMO ranges from -100 to +100, with positive values indicating upward momentum and negative values indicating downward momentum. Default 14-period calculation.

Cryptocurrency traders use CMO for more responsive momentum readings than RSI. Values above +50 suggest strong bullish momentum (overbought potential), below -50 suggest strong bearish momentum (oversold potential). CMO crossing above zero signals bullish momentum shift; crossing below signals bearish momentum shift. The wider range (-100 to +100 vs RSI's 0-100) provides more granular extreme readings. Divergences between CMO and price often precede reversals. Combine with trend indicators for directional confirmation, with volume for momentum validation, or with Bollinger Bands for overbought/oversold context. Developed as an improvement over RSI for faster momentum detection.