MERCURY-PRO by DrAbhiramSivprasd“MERCURYPRO”
The MERCURYPRO indicator is a custom technical analysis tool designed to provide dynamic trend signals based on a combination of the Chande Momentum Oscillator (CMO) and Standard Deviation (StDev). This indicator helps traders identify trend reversals or continuation based on the behavior of the price and momentum.
Key Features:
• Source Input: The indicator works with any price data, with the default set to close, which represents the closing price of each bar.
• Length Input: A period (default value 9) is used to determine the calculation window for the Chande Momentum Oscillator and Standard Deviation.
• Fixed CMO Length Option: Users can choose whether to use a fixed CMO length of 9 or adjust the length to the user-defined pds value.
• Calculation Method: The indicator allows switching between using the Chande Momentum Oscillator (CMO) or Standard Deviation (StDev) for the momentum calculation.
• Alpha: The smoothing factor used in the calculation of the MERCURYPRO value, which is based on the length of the period input (pds).
Core Calculation:
1. Momentum Calculation: The script calculates the momentum by determining the change in the source price (e.g., close) from one period to the next.
2. Chande Momentum Oscillator (CMO): The positive and negative momentum components are calculated and then summed over the specified period. This value is normalized to a percentage to determine the momentum strength.
3. K Value Calculation: The script selects either the CMO or Standard Deviation (depending on the user setting) to calculate the k value, which represents the dynamic price momentum.
4. MERCURYPRO Line: The final output of the indicator, MERCURYPRO, is computed using a weighted average of the k value and the previous MERCURYPRO value. The line is smoothed using the Alpha parameter.
Plot and Signal Generation:
• Color Coding: The line is color-coded based on the direction of MERCURYPRO:
• Blue: The trend is bullish (MERCURYPRO is rising).
• Maroon: The trend is bearish (MERCURYPRO is falling).
• Default Blue: Neutral or sideways market conditions.
• Plotting: The MERCURYPRO line is plotted with varying colors depending on the trend direction.
Alerts:
• Color Change Alert: The indicator has an alert condition based on when the MERCURYPRO line crosses its previous value. This helps traders stay informed about potential trend reversals or continuation signals.
Use Case:
• Trend Confirmation: Traders can use the MERCURYPRO indicator to identify whether the market is in a strong trend or not.
• Signal for Entries/Exits: The color change and crossovers of the MERCURYPRO line can be used as entry or exit signals, depending on the trader’s strategy.
Overall Purpose:
The MERCURYPRO indicator combines momentum analysis with smoothing techniques to offer a dynamic, responsive tool for identifying market trends and potential reversals. It is particularly useful in conjunction with other technical indicators to provide confirmation for trade setups.
How to Use the MERCURYPRO Indicator:
The MERCURYPRO indicator is designed to help traders identify trend reversals and market conditions. Here are a few ways you can use it:
1. Trend Confirmation (Bullish or Bearish)
• Bullish Trend: When the MERCURYPRO line is colored Blue, it indicates a rising trend, suggesting that the market is bullish.
• Action: You can consider entering long positions when the line turns blue, or holding your existing positions if you’re already long.
• Bearish Trend: When the MERCURYPRO line is colored Maroon, it signals a downward trend, indicating a bearish market.
• Action: You may consider entering short positions or closing any long positions when the line turns maroon.
2. Trend Reversal Alerts
• Color Change: The MERCURYPRO indicator changes color when there’s a trend reversal. The alert condition triggers when the MERCURYPRO crosses above or below its previous value, signaling a potential shift in the trend.
• Action: You can use this alert as a signal to monitor potential entry or exit points for trades. For example, a crossover from maroon to blue could indicate a potential buying opportunity, while a crossover from blue to maroon could suggest a selling opportunity.
3. Use with Other Indicators for Confirmation
• While the MERCURYPRO provides valuable trend insights, it’s often more effective when used in combination with other indicators like RSI (Relative Strength Index), MACD, or moving averages to confirm signals.
• Example: If MERCURYPRO turns blue and RSI is above 50, it may signal a strong bullish trend, enhancing the confidence to enter a long trade.
4. Divergence
• Watch for divergence between the MERCURYPRO line and the price chart:
• Bullish Divergence: If the price makes new lows while MERCURYPRO is showing higher lows, it suggests a potential bullish reversal.
• Bearish Divergence: If the price makes new highs while MERCURYPRO is showing lower highs, it suggests a potential bearish reversal.
Example of Use:
• Example 1: If the MERCURYPRO line changes from maroon to blue, you might enter a long position. After the MERCURYPRO line turns blue, use an alert to monitor the price action. If other indicators (like RSI) also suggest strength, your confidence in the trade will increase.
• Example 2: If the MERCURYPRO line shifts from blue to maroon, it could be a signal to close long positions and consider shorting the market if other conditions align (e.g., moving averages also turn bearish).
Warning for Using the MERCURYPRO Indicator:
1. Lagging Indicator:
• The MERCURYPRO is a lagging indicator, meaning it responds to price changes after they have occurred. This may delay entry and exit signals, and it’s crucial to combine it with other leading indicators to get timely information.
2. False Signals in Range-bound Markets:
• In choppy or sideways markets, the MERCURYPRO line can produce false signals, flipping between blue and maroon frequently without showing a clear trend. It’s important to avoid trading based on these false signals when the market is not trending.
3. Overreliance on One Indicator:
• Relying solely on MERCURYPRO can be risky. Always confirm signals with additional tools like volume analysis, price action, or other indicators to increase the accuracy of your trades.
4. Market Conditions Matter:
• The indicator may work well in trending markets, but in highly volatile or news-driven environments, it may provide misleading signals. Ensure that you take market fundamentals and external news events into consideration before acting on the indicator’s signals.
5. Risk Management:
• As with any technical indicator, MERCURYPRO is not infallible. Always use appropriate risk management techniques such as stop-loss orders to protect your capital. Never risk more than you can afford to lose on a trade.
6. Backtest First:
• Before implementing MERCURYPRO in live trading, make sure to backtest it on historical data. Test the strategy with various market conditions to assess its effectiveness and identify any potential weaknesses.
By considering these guidelines and warnings, you can use the MERCURYPRO indicator more effectively and mitigate potential risks in your trading strategy.
Dao động Xung lượng Chande (CMO)
MTF RSI+CMO PROThis RSI+CMO script combines the Relative Strength Index (RSI) and Chande Momentum Oscillator (CMO), providing a powerful tool to help traders analyze price momentum and spot potential turning points in the market. Unlike using RSI alone, the CMO (especially with a 14-period length) moves faster and accentuates price pops and dips in the histogram, making price shifts more apparent.
Indicator Features:
➡️RSI and CMO Combined: This indicator allows traders to track both RSI and CMO values simultaneously, highlighting differences in their movement. RSI and CMO values are both plotted on the histogram, while CMO values are also drawn as a line moving through the histogram, giving a visual representation of their relationship. The often faster-moving CMO accentuates short-term price movements, helping traders spot subtle shifts in momentum that the RSI might smooth out.
➡️Multi-Time Frame Table: A real-time, multi-time frame table displays RSI and CMO values across various timeframes. This gives traders an overview of momentum across different intervals, making it easier to spot trends and divergences across short and long-term time frames.
➡️Momentum Chart Label: A chart label compares the current RSI and CMO values with values from 1 and 2 bars back, providing an additional metric to gauge momentum. This feature allows traders to easily see if momentum is increasing or decreasing in real-time.
➡️RSI/CMO Bullish and Bearish Signals: Colored arrow plot shapes (above the histogram) indicate when RSI and CMO values are signaling bullish or bearish conditions. For example, green arrows appear when RSI is above 65, while purple arrows show when RSI is below 30 and CMO is below -40, indicating strong bearish momentum.
➡️Divergences in Histogram: The histogram can make it easier for traders to spot divergences between price and momentum. For instance, if the price is making new highs but the RSI or CMO is not, a bearish divergence may be forming. Similarly, bullish divergences can be spotted when prices are making lower lows while RSI or CMO is rising.
➡️Alert System: Alerts are built into the indicator and will trigger when specific conditions are met, allowing traders to stay informed of potential entry or exit points based on RSI and CMO levels without constantly monitoring the chart. These are set manually. Look for the 3 dots in the indicator name.
How Traders Can Use the Indicator:
💥Identifying Momentum Shifts: The RSI+CMO combination is ideal for spotting momentum shifts in the market. Traders can monitor the histogram and the CMO line to determine if the market is gaining or losing strength.
💥Confirming Trade Entries/Exits: Use the real-time RSI and CMO values across multiple time frames to confirm trades. For instance, if the 1-hour RSI is above 70 but the 1-minute RSI is turning down, it could indicate short-term overbought conditions, signaling a potential exit or reversal.
💥Spotting Divergences: Divergences are critical for predicting potential reversals. The histogram can be used to spot divergences when RSI and CMO values deviate from price action, offering an early signal of market exhaustion.
💥Tracking Multi-Time Frame Trends: The multi-time frame table provides insight into the market’s overall trend across several timeframes, helping traders ensure their decisions align with both short and long-term trends.
RSI vs. CMO: Why Use Both?
While both RSI and CMO measure momentum, the CMO often moves faster with a value of 14 for example, reacting to price changes more quickly. This makes it particularly effective for detecting sharp price movements, while RSI helps smooth out price action. By using both, traders get a clearer picture of the market's momentum, particularly during volatile periods.
Confluence and Price Fluidity:
One of the powerful ways to enhance the effectiveness of this indicator is by using it in conjunction with other technical analysis tools to create confluence. Confluence occurs when multiple indicators or price action signals align, providing stronger confirmation for a trade decision. For example:
🎯Support and Resistance Levels: Traders can use RSI+CMO in combination with key support and resistance zones. If the price is nearing a support level and RSI+CMO values start to signal a bullish reversal, this alignment strengthens the case for entering a long position.
🎯Moving Averages: When the RSI+CMO signals a potential trend reversal and this is confirmed by a crossover in moving averages (such as a 50-day and 200-day moving average), traders gain additional confidence in the trade direction.
🎯Momentum Indicators: Traders can also look for momentum indicators like the MACD to confirm the strength of a trend or potential reversal. For instance, if the RSI+CMO values start to decrease rapidly while both the RSI+CMO also shows overbought conditions, this could provide stronger confirmation to exit a long trade or enter a short position.
🎯Candlestick Patterns: Price fluidity can be monitored using candlestick formations. For example, a bearish engulfing pattern with decreasing RSI+CMo values offers confluence, adding confidence to the signal to close or short the trade.
By combining the MTF RSI+CMO PRO with other tools, traders ensure that they are not relying on a single indicator. This layered approach can reduce the likelihood of false signals and improve overall trading accuracy.
RSI_CMO_ScannerHave you ever wanted to scan across many tickers and monitor an indicator across time for these selected tickers?
Have you ever wanted to monitor the Mag7 and SPY simultaneously and watch a divergence take place real time across all selected tickers?
With this indicator, you can now view 100 tickers (in batches of 10) for either Stocks, Crypto or Forex, with a HeatMap visualisation for the selected timeframe.
This particular indicator utilises the RSI or the CMO to provide this view, where colors change from deep red (low values) to dark green (high values) and provide the HeatMap sense of how this metric changes across time.
The values within the labels can be switched on and off from the Settings, depending on the user's preference.
Additionally, the tickers can be selected through the Settings from the Stocks, Crypto or Forex groups
The originality and usefulness of this indicator is that it provides a simultaneous view across batches of 10 tickers for a lookback of values in the given timeframe. Also, the view is served as a heatmap, for a visual understanding of the fluctuation over time.
The same logic can be applied to a variety of indicators, besides the RSI and the CMO.
Savitzky-Golay Filtered Chande Momentum OscillatorThe Savitzky-Golay Filtered Chande Momentum Oscillator (SGCMO) is a modified version of the Chande Momentum Oscillator that functions as a powerful analytical tool, capable of detecting trends and mean reversals. By applying a Savitzky-Golay filter to the price data, the oscillator provides enhanced visualization and smoother readings. (credit to © anieri for the Savitzky-Golay filter code: www.tradingview.com)
Chande Momentum Oscillator
The Chande Momentum Oscillator (CMO) is a technical indicator developed by Tushar Chande. It measures the momentum of an asset's price movement and provides insights into the overbought or oversold conditions of the market. The CMO calculates the difference between the sum of positive price changes and the sum of negative price changes over a specified period, and then normalizes it to a scale between -100 and +100. Traders and investors use the CMO to identify potential trend reversals, confirm the strength of a current trend, and generate buy or sell signals.
Smoothing
The Savitzky-Golay filter is a digital filter commonly employed for smoothing and noise reduction in time-series data. In the context of the SGCMO, the aim is to effectively smooth the CMO values, reducing the impact of short-term fluctuations and providing clearer insights into underlying trends. Additionally, an exponential moving average (EMA) filter is applied to further reduce noise and enhance trend visibility. This filtered CMO indicator may provide traders and investors with a clearer and more refined representation of momentum changes in the underlying asset, helping them make more informed trading decisions.
Application
The SGCMO serves as both a trend-following and mean-reversion tool. Traders can track the current trend using bullish white lines or bearish orange lines in trending markets. Alternatively, they can utilize green and red vertical lines, which indicate price retracement and help capture pullbacks and reversals. Green vertical lines appear when the trend reverses upwards in an oversold zone (-50 to -80), while red vertical lines indicate negative trend reversals in an overbought zone (50 to 80). Opening long positions when green and white lines appear, or short positions when red and orange lines are visible, can be considered. However, it is advisable to combine this indicator with other complementary technical analysis tools and incorporate it into a comprehensive trading strategy to maximize its effectiveness.
Direction Analysis WavesDescription
It is an indicator that aims to provide information about the direction of the trend, the basis of which is the CCI, CMO and MFI indices.
Symbols on the indicator are for informational purposes. Information about colors and symbols is given below.
Blue Wave: Graphical representation of the Commodity Channel Index (CCI) curve.
Green/Red Wave: Graphical representation of the Chande Momentum Oscillator (CMO) curve. This curve turns green when it rises above zero, and turns red when it falls below zero.
Yellow Wave: Graphical representation of the Money Flow Index (MFI) curve.
Blue Line: CCI line.
Green/Red Cross: CCI line shows green cross on red cross below 0 value.
Warning
As a result, this indicator should be expected to give an idea of the trend direction, not a trading signal.
Version
v1.0
🥢 Crypto-Sticks™: Chande Momentum Osc by Cryptorthyhms🥢 Crypto-Sticks™
A new series of indicators brought to you by Cryptorthyhms...giving you an alternate look at your trusted favorites!
🚀 Indicator Specific Info
I have found this indicator to show nice divergences as shown on the main chart. Even in this nightmarish sideways bitcoin movement, it still is giving decent divergence signals! It also gives a signaling system to CMO implementing overbought and oversold zones. This indicator is freely available for anyone from the public library.
🚀 Crypto-Sticks General Info
💭This series isnt polished 100%, and I have some more options I will add in the future. But for now, I want to just release them, as I am not sure when I will have the time to put more work into them (many other big projects I am working on).
📊Its basically reinterpretations of all your favorite indicators. I calculate the values a little bit differently than normal, but the end result is creating a candlestick chart (for the indicator!). Then I added the option to plot them as Heiken Ashi candles to smooth out noise and make signaling easier. Here's how it looks as Heiken Ashi:
🔊Lastly I implemented a Volume Weighting system for them all which simply integrates volume into the formulas for these indicators. For the most part this feature is experimental and doesn't provide huge utility ( yet - I have other ways I want to try it as well - just no time). Though on some of the indicators it already shows great promise. Here is Volume Weighted + Heiken Ashi:
👍Enjoying this indicator or find it useful? Please give me a like and follow! There are many more indicators to be released in this series, not to mention I post crypto analysis and other free indicators regularly.
💬Questions? Comments? Want to get access to an entire suite of proven trading indicators? Come visit us on telegram and chat, or just soak up some knowledge. We make timely posts about the market, news, and strategy everyday. Our community isnt open only to subscribers - everyone is welcome to join.
CMO with ATR and LagF Filtering - RevNR - 12-27-22Rev NR of the CMO ATR, with LagF Filtering - Released 12-27-22 by @Hockeydude84
This code takes Chande Momentum Oscillator (CMO), adds a coded ATR option and then filters the result through a Laguerre Filter (LagF) to reduce erroneous signals.
This code also has an option for self adjusting alpha on the Lag, via a lookback table and monitoring the price rate of change (ROC) in the lookback length.
Faster ROC will allow the LagF to move faster, slower price action will slow down LagF reaction. Pausing of signals is also present based on Rate of Change of the LagF Curve
Aggressive signals and Base signaling is allowed - aggressive bases signals on increase/decrease of previous LagF curve value point, Base is greater or less than 0
Original Code credits; Lost some of this due to time and multiple script manipulations, I believe the CMO origin code is from @TradingView House Code, and the LagF from @KıvançÖzbilgiç
CMOChande Momentum Oscillator with Overbought and Oversold value
If it is above 25 then enter the trade
and if goes below -25 then exit from the trade
Wave Trend Momentum OscillatorThis momentum oscillator is instantaneous and also extremely accurate. For use on all timeframes. Shows wave trend momentum as well as reliable diversions. A secondary crossover (Wave Trend Crossover) can be turned on to give even earlier entries and exits. This indicator has the ability to show changes in trend before it happens. Diversions can be turned off in settings.
There are 3 different smoothing options to tune the indicator to your chart/timeframe. Default setting is HULL.
Wave trend has 4 coloring options: sold, dual color 1, dual color 2 or none (dont show wave trend).
A J line can be turned on in settings as well as the wave trend crossover.
Amazing Oscillator MTF MulticolorIngles
The amazing multitemporal oscillator, allows you to see in a single graph the Waves that move the market in different temporalities, that is, you will be able to see the market trend, the impulse movement, the forced movement, and the entry and exit points, as well as also how both collide with each other, to understand why the smaller waves succumb to the impulse of the larger waves.
Elliot already described them as such, in his legacy of the Elliot waves and their different sub-waves, just as Wycoff spoke of the theory of effort and result.
Español:
El oscilador asombroso multitemporal, permite ver en una sola grafica las Ondas que mueven el mercado en diferentes temporalidades, es decir, podrás ver la tendencia del mercado, el movimiento de impulso, el movimiento de fuerza y los puntos de entrada y salida, así como también como ambos chocan entre si, para entender porque las ondas mas pequeñas sucumben al impulso de las ondas de mayor tamaño.
Ya Elliot las describía como tal, en su legado de las ondas de Elliot y sus diferentes sub-ondas, al igual que Wycoff hablaba de la teoría de esfuerzo y resultado.
CT Reverse Chande Momentum OscillatorIntroducing the Caretakers Reverse Chande Momentum Oscillator.
The Chande momentum oscillator is a technical momentum indicator which 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.
It is used to gauge “pure momentum”.
It bears similarities to other momentum indicators such as the Stochastic, Rate of Change and the Relative Strength Index, but other unique features render it a handy tool in the traders handset.
The CMO was developed by Tushar Chande.
The author introduced the indicator in his 1994 book “The New Technical Trader “.
The CMO has a normal range of values between +100 and -100.
I have reverse engineered the CMO formula to derive a dual purpose function.
The function can calculate the chart price at which the CMO will reach a particular CMO scale value.
The function can also calculate the chart price at which the CMO will equal its previous value.
I have employed this function here to give the price level where the CMO will equal :
Upper alert level ( default 50 )
Zero-Line
Lower alert level ( default -50 )
Previous CMO value
These crossover levels are displayed via an optional infobox with choice of user selected info.
The advantage of knowing the exact prices that this will happen should give the user an additional edge and precision in risk management.
Traditionally traders and analysts will consider:
Positives values above 50 indicate an “overbought” condition
Negative values below -50 indicate an “oversold” condition
Common traditional ways to derive signals from the CMO :
When the CMO crosses above the zeroline, a buy signal is generated.
When the CMO crosses below the zeroline, a sell signal is generated.
When the SMI crosses below -50 and then moves back above it, a buy signal is generated.
When the SMI crosses above +50 and then moves back below it, a sell signal is generated.
Traditionally, traders also look for divergences between the CMO and price action.
Chande Momentum oscillating in a narrower band around the zero line, with no penetration of the Overbought and Oversold levels indicates a ranging market.
This should not be confused with Chande Momentum oscillating between either the Overbought and the zero line, or the Oversold level and the zero line, which indicates a strong up, or down-trend.
It is traditionally considered that the strongest trend signals are from failed swing patterns.
It measures momentum on both up and down days and does not smooth results, triggering more frequent oversold and overbought penetrations.
The CMO is often used to determine overall market trendiness in conjunction with the SMI where the SMI is used to determine the direction of the trend, and also with volume indicators to show if the momentum carries significant selling or buying pressure.
Chande Momentum Oscillator - Alerts and RegionsIt seemed weird to me that the default Chande didn't have overbought and oversold regions, despite them being described for Chande Momentum and working very well. So I added the lines and alert conditions. I've used this to very good results in my day trading.
My strategy involved 4 timeframes of candlestick, each with 4 timeframes of Chande overlaid. Candlesticks are 5 min, 20 min, 80 min, 320 min and Chandes are x1, x2, x4 and x8 of the relevant time zone. Give it a shot. Use the 5 min Chande as Buy and Sell signal with the other timeframes for trend confirmation. You may get a lot of extra alerts with this setup, but it's almost impossible to really miss an opportunity if you use it right. It will take up all your free time though, as a warning. Using this strat made me go crazy.
Use the chande crossing over the lines as the signal, not just being in the region, as that will make you buy early.
Accumulation and Distribution MomentumThis applies Chande Momentum to Accumulation and Distribution index as a means to changes.
Experimental oscillator.
Compare it to both Money Flows, Acc/Dis and Chande and you notice it has elements of all of them. Could potentially replace other volume based momentum indicators in your strategy.
It is a little more volatile, reaching from side to side, while having a tendency to lean towards the side that gets the most action over a longer period of time.
It also tends to reach and hang in oversold regions BEFORE a pump - something I noticed.
Could be used as an early warning sign as well as for overall trend analysis.
Stock exchangeThe indicator presents the possibility to continue growing up.
It's based on Raz Gamliel concept of the "Stock Exchange Table".
Probability to grow:
Green - High
Yellow - Medium
Orange - Low
Red - Very Low
The calculation uses the value of "Total Shares Outstanding" instead of "Share Float" since TradingView doesn't support this value yet.
There is an option to set the Share Float manually. Keep in mind to reset the value to 0 (zero) when moving to another stock.
There is an option to calculate some candles together as a group.
I hope you will get value from using the indicator.
Momentum Oscillator [Dynamic & Flow] (Expo)Momentum Oscillator -Dynamic & Flow (Expo) is a fast-moving, sensitive oscillator that makes use of momentum in various ways. The indicator has two additional layers (Buy & Sell moves) and (Extremes) which makes it reacts quickly to price changes.
The indicator displays overbought and oversold areas as well as extreme areas and how aggressive buyers and sellers are. It does also displays potential reversal points or potential pullbacks.
The following momentum modes are displayed:
1. Where momentum begins
2. Where momentum is strong
3. Where momentum begins to stall
Where momentum begins to stall is displayed as a red and green color on the momentum line .
Where momentum begins (light green and light red color) and where it's strong (dark green and dark red color) is displayed as upper and lower lines. The darker these lines are the stronger is the momentum.
Potential reversal or pullback is displayed as a blue color on the signal line.
♢ The indicator has inbuilt suggested buy & sell- and stop-loss signals. These signals have flexible settings, so a fast, slow, and sensitive mode can be enabled.
DIVERGENCES
All types of momentum oscillators produce divergences and so does Momentum Oscillator Dynamic & Flow (Expo) . Divergences occur when the oscillator deviates from the trending price action. Bullish divergence is then when the trending price makes a lower low but the oscillator makes a higher low. Bearish divergence is then when the trending price makes a higher high but the oscillator makes a lower high.
HOW TO USE
1. Use the indicator to identify overbought/oversold areas, as well as extreme modes.
2. Use the indicator to display momentum in various ways.
3. Use the indicator to confirm the existence, or a continuation, of a trend.
4. Use the indicator to identify potential reversal points or potential pullbacks.
INDICATOR IN ACTION
4-hour chart
I hope you find this indicator useful , and please comment or contact me if you like the script or have any questions/suggestions for future improvements. Thanks!
I will continually work on this indicator, so please share your experience and feedback as it will enable me to make even better improvements. Thanks to everyone that has already contacted me regarding my scripts. Your feedback is valuable for future developments!
ACCESS THE INDICATOR
• Contact me on TradingView or use the links below
-----------------
Disclaimer
Copyright by Zeiierman.
The information contained in my scripts/indicators/ideas does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, or individual’s trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My scripts/indicators/ideas are only for educational purposes!
Uber M-Oscillator (M. Fawzy, 2018) [UTS]General Usage
The M-Oscillator analyses the price change rather than the price level. It draws the difference between prices at two time intervals.
It is a leading indicator of price direction. It can identify when the current trend is no longer maintaining its same level of strength or is losing
momentum. The importance of the momentum is when its value reaches to extreme levels either up or down.
Interpretation
M-Oscillator reading for default period of 14.
M-Oscillator is plotted along the bottom of the price chart; it
fluctuates between positive and negative 14.
Movement above 10 is considered overbought, and movement
below -10 is oversold.
In sharp moves to the upside, the M-Oscillator fluctuates
between 5 and 14, while in down side it fluctuates between -5
and -14.
In an uptrend, the M-Oscillator fluctuates between zero and
14 and vice versa.
The advantage
The momentum line leads the price action (it leads the
advance or decline in prices).
The crossing of the zero line is considered as a trading signal.
The disadvantage
The need for an upper and lower boundary.
If recent price gains are the same as older price gains, the
momentum line will be fl at even though the market is still
going up.
If recent price gains are less than those of before, even if
prices are still rising, the rate of change will have slowed
further, and the momentum line will actually drop.
Using price differences in the erratic movements often caused
by sharp changes in the value.
The "Uber" M-Oscillator
The Uber version of M-Oscillator provides the following improvements:
Period is not fixed to 14 anymore, can be determined freely
Overbought and oversold conditions are automatically adjusted to the chosen period
Ability to draw oscillator crosses on the signal line
For both oscillator and signal line smoothing 16 moving averages are available
Available Moving Averages
16 different moving averages are available for oscillator and signal line:
ALMA (Arnaud Legoux Moving Average)
DEMA (Double Exponential Moving Average)
EMA (Exponential Moving Average)
FRAMA (Fractal Adaptive Moving Average)
HMA (Hull Moving Average)
JURIK (Jurik Moving Average)
KAMA (Kaufman Adaptive Moving Average)
Kijun (Kijun-sen / Tenkan-sen of Ichimoku)
LSMA (Least Square Moving Average)
RMA (Running Moving Average)
SMA (Simple Moving Average)
SuperSmoothed (Super Smoothed Moving Average)
TEMA (Triple Exponential Moving Average)
VWMA (Volume Weighted Moving Average)
WMA (Weighted Moving Average)
ZLEMA (Zero Lag Moving Average)
Alerts
Traders can easily use the trend change signals to trigger alerts from:
Cross Up
Cross Down
Those values are > zero if a condition is triggered.
Alert condition example: "Cross Up" - "GreaterThan" - "0"
Trading tactics
Overbought/Oversold:
We define the overbought area as anywhere above the 10
level. The oversold area is below -10. When the M-Oscillator goes
above 10 (overbought) and then re-crosses it to the downside,
a sell signal is triggered. When the M-Oscillator surpasses -10
to the downside and then re-crosses back above this level, a
buy signal is triggered. This tactic is only successful during
sideways markets; during an uptrend, the oscillator will remain
in its overbought territory for long period of times. During a
downtrend, it will remain in oversold for a long time.
Overbought/Oversold rule:
Buy when the M-Oscillator violates the (-10) level to the
downside and crosses back to the upside
Sell when the M-Oscillator crosses above the (+10) level and
crosses back to the downside
Divergence:
Divergence is one of the most striking features of the
M-Oscillator. It is a very important aspect of technical analysis
that enhances trading tactics enormously; it shows hidden
weakness or strength in the market, which is not apparent in
the price action. A positive divergence occurs when the price is
declining and makes a lower low, while M-Oscillator witnesses
a higher low. A negative divergence occurs when the price is
rising and makes a higher High, while the M-Oscillator makes
a lower high, which indicates hidden weakness in the market.
Divergences are very important as they give us early hints of
trend reversal.
Divergence rule:
Buy when the M-Oscillator witnesses a positive divergence
with prices followed by a rise above (-10)
Sell when the M-Oscillator witnesses a negative divergence
with prices followed by a decline below (+10)
Support and Resistance
During an uptrend, the M-Oscillator moves between (0) and
(+10). During a downtrend, most of the time the M-Oscillator
will move between (0) and (-10). Sometimes the (0) level acts
as support (in the case of uptrends) and resistance (during
downtrends). We can buy during an uptrend when the
M-Oscillator reaches its midrange (0) and begins to move to the
upside from there. During downtrends, an upward move to (0)
might be a selling opportunity.
It is also used as exit signal (when the M-Oscillator acts as a
resistance) as well as indication of a re-entry level (when the
M-Oscillator acts as a support)
Exit signal:
When the M-Oscillator crosses above the (-10), giving
a buy signal, but it doesn’t retrace further than the zero
line, the M-Oscillator drops towards the lower boundary.
This is considered as weakness and an exit signal when the
M-Oscillator drops from the zero line toward the (-10). (To avoid
whipsaws, filters can be used.)
Re-entry:
When the M-Oscillator breaks the (+10), giving a sell signal,
but it doesn’t retrace further than the zero line, the M-Oscillator
rebounds toward the upper boundary. This is considered as
strength and a re-entry point when the M-Oscillator rebounds
from zero line to upside. (To avoid whipsaws, filters can be used.)
Using M-Oscillator as a Trend Identifier on LongTerm Scale
During downtrends, the M-Oscillator does not reach
overbought zone. A move toward the overbought area is a sign of
strength when it occurs for the first time in a while. On the other
hand, during uptrend, the M-Oscillator does not reach oversold
areas easily. Going into oversold and staying there after a long
time is a signal that the uptrend is reversing. (As Constance
Brown explained in her book Technical Analysis for the Trading
Professional, chapter 1, “oscillators do not travel between 0 and
100”.)
Crossover on Extreme Levels
Sell signals are triggered when the M-Oscillator crosses
its signal line above (13), which indicates an extreme market
condition, and buy signals are triggered when the M-Oscillator
crosses its signal line below (- 13).
Aroon Histogram + CMO Multiple Time Frames [ChuckBanger]This script is based on my Aroon Histogram + CMO:
But it has the option to use it multiple time frames to automatically check for bull and bear crossover on CMO and it has the ability for the trader to set alert on crossovers
Chande Momentum Oscillator + WaveTrend Oscillator [ChuckBanger]This is a combination of Lazybears WaveTrend Oscillator (purple line) and Chande Momentum Oscillator (blue line with the orange line as a signal line). Use WaveTrend as a confirmation tool. It is consider as a selling point when CMO is over the red horizontal dotted line. The opposite applies if CMO line is under the red horizontal dotted line.
You can also use this with WaveTrand to confirm the sell or buy point. When WT line is over center line and CMO has crossed over it's signal line. It is a buy point. The opposite applies if WT line is under the center line and CMO is under its signal line.
Aroon Histogram + CMO [ChuckBanger]This is a combination of Aroon and Chande Momentum Oscillator . I made a histogram of Aroon , aqua line is Chande Momentum and the orange line are a simple moving average of Chande Momentum as a signal line.
One strategy you can use this for is to buy or sell when the signal line crosses the CM line or you can buy and sell when CM line is highest or lowest
You should also study how the indicators work separately:
Aroon Oscillator
www.investopedia.com
Chande Momentum Oscillator
www.investopedia.com
Pulse Profits+ Study v2.0Here is the updated version of our Pulse Profits+ study based on the combination of the Chande Momentum Oscillator and Elder's Force Index . This version was updated to include stop-loss and improved signals
Red background highlights mark sell signals and green highlights represent buy signals. All signals are accompanied by corresponding alerts that can be tailored for the various automated trading platforms.
All indicators can be found on our website in the bio and come with their strategy equivalents
Chande Momentum Oscillator(CMO) & EMA with Divergences Hello Friends,
* Chande Momentum Oscillator (CMO) + EMA + (Regular/Hidden) Divergence + Bullish/Bearish background colors.
* You can edit your options from indicator settings.
Momentum TraderThis study combines two versatile momentum indicators :
Chande Momentum Oscillator:
-Measures trend strength, with higher absolute values meaning greater strength.
-Also tracks divergence. When price increases, but is not accompanied by an increase in Chande Momentum Oscillator values, it signifies bearish divergence and a reversal is likely to follow.
-Shown as the teal and pink histogram.
Percentage Price Oscillator:
-Similar to the MACD, except that it expresses the difference between the two moving averages in terms of a percentage. This makes it a little easier to visualize.
-PPO values greater than zero indicate an uptrend, as that means the fast EMA is greater than the slow (and vice versa).
Entry and Exit Conditions:
Enter When:
1) Chande Momentum crosses over zero from negative to positive territory. AND
2) It has been less than 3 bars since Chande Momentum was less than the lower green line. AND
3) Chande Momentum is rising(positive slope).
Exit When:
1) Chande Momentum is greater than the upper line. AND
2) It has been less than 6 bars since the PPO value was greater than the upper bound. AND
3) PPO is less than 5 (meaning the difference between the two EMA's is less than 5%). AND
4)PPO has a negative slope.
This study comes with alert conditions for long entries and exits.
~Happy Trading~
StochCMO - Stochastic CMO [SHK]StochCMO is the combination of Stochastic and CMO (Chande Momentum Oscillator).
The StochCMO is an indicator used in technical analysis that ranges between zero and one and is created by applying the Stochastic Oscillator formula to a set of Chande Momentum Oscillator (CMO) values rather than standard price data. Using CMO values within the Stochastic formula gives traders an idea of whether the current CMO value is overbought or oversold - a measure that becomes specifically useful when the CMO value is confined between its signal levels of 20 and 80.
Usage:
The usage of StochCMO is similar to StochRSI.
StochCMO vs StochRSI:
The difference between these indicators can be realized by comparing CMO & RSI:
CMO is similar to the Relative Strength Index (RSI) except that it measures momentum on both up days and down days. The CMO also does not use internal smoothing and thus does not obscure short-term extremes in momentum. As a result, the CMO often reaches over bought and over sold areas more regularly than momentum indicators, such as the RSI, that have internal smoothing.
Hope it helps you.
