DEFINITION of 'Chande Momentum Oscillator'
A technical momentum indicator invented by the technical analyst Tushar Chande. It is created by calculating the difference between the sum of all recent gains and the sum of all recent losses and then dividing the result by the sum of all price movement over the period. This oscillator is similar to other momentum indicators such as the Relative Strength Index and the Stochastic Oscillator because it is range bounded (+100 and 100).
INVESTOPEDIA EXPLAINS 'Chande Momentum Oscillator'
The security is deemed to be overbought when the momentum oscillator is above +50 and oversold when it is below 50. Many technical traders add a nineperiod moving average to this oscillator to act as a signal line. Bullish signals are generated when the oscillator crosses above the signal, and bearish signals are generated when the oscillator crosses down through the signal.

Indicator
Indicators are statistics used to measure current conditions ... 
Overbought
1. A situation in which the demand for a certain asset unjustifiably ... 
Oversold
1. A condition in which the price of an underlying asset has ... 
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Crossover
The point on a stock chart when a security and an indicator intersect. ... 
Relative Strength Index  RSI
A technical momentum indicator that compares the magnitude of ...

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