CMO

Source

https://github.com/quadcode-tech/quadcodescript-library/blob/master/momentum/chande_momentum_oscillator.lua

Syntax Format

cmo(series, period)

Overview

CMO (Chande Momentum Oscillator) is an indicator in the Momentum group, whose main purpose is to provide information on the trend direction and its strength. Also, the CMO indicator can show whether the asset is overbought or oversold.

Parameters

Parameter	Type	Purpose
series	series	Input series, taken into calculation
period	integer	Period, taken into calculation

Returns: series.

Example

instrument { name = "Chande Momentum Oscillator" }

input_group {
    "CMO Line",
    period = input (9, "period", input.integer, 1),
    color  = input { default = "#57A1D0", type = input.color },
    width  = input { default = 1, type = input.line_width}
}

input_group {
    "Support Lines",
    overbought = input (50, "overbought", input.double, 0, 100, 1, false),
    oversold = input (-50, "oversold", input.double, -100, 0, 1, false),

    overbought_color  = input { default = rgba(37,225,84,0.50), type = input.color },
    oversold_color  = input { default = rgba(255,108,88,0.50), type = input.color },
    bg_color  = input { default = rgba(255,255,255,0.05), type = input.color },
    support_width  = input { default = 1, type = input.line_width}
}

fill_area (overbought, oversold, "", bg_color)

plot (cmo (close, period) * 100, "CMO", color, width)

hline { value = overbought, color = overbought_color, width = support_width, style = style.dash_line }
hline { value = oversold, color = oversold_color, width = support_width, style = style.dash_line }

hline { value = 100, color = "#000000", show_label = false }
hline { value = -100, color = "#000000", show_label = false }

Formula

The formula for calculating CMO is:

The indicator considers the sum of up-day price changes versus down-day price changes over the chosen period.