Chande's Momentum Oscillator Indicator for MT4

The Chande’s Momentum Oscillator Indicator is a custom forex oscillator that was originally developed by Tushar Chande. As the name suggests, it is a technical indicator that attempts to capture the market’s momentum. As it is with all oscillators, a trader takes advantage of provided overbought/oversold levels.

How to trade with the chandes momentum oscillator?

The range of the Chande’s Momentum Oscillator Indicator is from -100 to 100. The oversold level is considered when the indicator’s value drops below the -50 level, and conversely, it is considered overbought when it exceeds the 50 level. We think that it shouldn’t be used as a standalone trading tool, therefore in the examples below we use it in conjunction with 100-period Exponential Moving Average.

Buy Signal

Follow these steps for a long trade:

  • General trend is bullish as price stays above the 100 EMA
  • Chande’s Momentum Oscillator drops below the -50 level and reverse
  • Price swings higher from recent low swing
  • Buy trade is triggered after the above conditions are met
  • Set stop loss a few pips below the last swing low of the market
  • Take profit or exit whenever the Chande’s Momentum Oscillator indicator provides opposite signal or use your own method of trade exit

Chande's Momentum Oscillator Indicator Example of Buy Trade

Sell Signal

Follow these steps for a short trade:

  • General trend is bearish as price stays below the 100 EMA
  • Chande’s Momentum Oscillator exceeds above the 50 level and reverse
  • Price swings lower from recent high swing
  • Sell trade is triggered after the above conditions are met
  • Set stop loss a few pips above the last swing high of the market
  • Take profit or exit whenever the Chande’s Momentum Oscillator indicator provides opposite signal or use your own method of trade exit

Chande's Momentum Oscillator Indicator Example of Sell Trade


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