# Chande Momentum Oscillator (CMO)

> The Chande Momentum Oscillator (CMO) is an indicator that measures the speed and direction of price change from -100 to +100, with overbought and oversold zones.

The Chande Momentum Oscillator (CMO) is a technical analysis indicator developed by Tushar Chande. It measures the speed and direction of price movement, allowing you to assess the current strength of a trend and potential reversal points.

## How CMO Works

- Range: **from -100 to +100**.
- Key Zones:
	- **Above +50** — overbought, the market may be overheated.
	- **Below -50** — oversold, a quick recovery is possible.
	- **0** — neutral level.
- Positive values → bullish pressure prevails (upward trend).
- Negative values → bearish pressure prevails (downward trend).

## How to use in trading

1. **Specify the value to compare with** - click the "Pencil" button. Without specifying a value:
    - **For a long bot**: entry when CMO < 50, exit when CMO > -50
    - **For a short bot**: entry when CMO > -50, exit when CMO < 50

2. **Leaving the overbought/oversold zones**
	- Returning downwards from the zone above +50 → Sell-signal (open Short).
	- Returning upwards from the zone below -50 → Buy-signal (open Long).

3. **Trade Filtering**
	- When combined with trend indicators (e.g., [MA](https://help.veles.finance/en/filters/sma/), [ADX](https://help.veles.finance/en/filters/adx/)), CMO helps filter out false signals.

## Using in Veles Bots (Flexible Indicator)

Available settings:

- Period - the number of candles for calculation. Range: 2–100, default 9.
- Interval - the candle timeframe.
- Method - the calculation type. By bar close (only on the selected interval) or by minute (once per minute for any interval).
- Shift - shifts the requested indicator value back by the specified number of candles.

## Limitations

- The effectiveness of CMO depends on the selected timeframe and asset — period settings should be adjusted individually.
- In highly volatile markets, the oscillator may cross key levels more frequently, requiring additional filtering.
- CMO is best used in combination with support and resistance level analysis.

Click the **"Pencil"** button in the indicator settings to customize the parameters.

## Summary

The Chande Momentum Oscillator offers a wide ±100 range and clear overbought/oversold levels, making it a useful directional filter in Veles bots. It works best on medium timeframes in combination with trend indicators or support/resistance levels to reduce false zero-line crossings.