Chande Momentum Oscillator Enhanced For ThinkOrSwim

[olufemig]

thanks for sharing this. what do the percentages on the zones mean?

 

[antwerks]

thanks for sharing this. what do the percentages on the zones mean?

Those represent strength of that support or resistance

 

[Zlotko]

@antwerks
Do you have the link to the CMO vs MA ?

 

[antwerks]

@Zlotko https://tos.mx/!TwTJNyF8 Also look at comment #15 for copy paste

 

[alejoal]

The RSI is awesome, but the Chande Momentum Oscillator is awesomer!!! The Chande Momentum Oscillator (CMO) is a technical analysis indicator created by Tushar Chande that measures pure momentum in a security’s price, oscillating between +100 and -100.
It’s similar in spirit to RSI, but instead of comparing average gains and losses, it adds up all price changes (up and down) over a period and divides the net change by the total absolute changes — giving a percentage measure of net momentum.

In the chart below of TSLA, I have marked areas in the dashed lines of an aggressive entry/exit and solid lines a more conservative entry/exit examples using the supply and demand zones as final criterias
shared chart link: https://tos.mx/!CadtYHzG
Script for this indicator can found below
View attachment 25450
mod note:


Oscillator Formula
For a chosen period n:

CMO=100×Sum of Gains over n−Sum of Losses

Where the formula calculates the Sum of Gains = sum of all positive price changes during n and divides by the Sum of Losses = sum of absolute values of all negative price changes during n.

Key Characteristics

1. Bounded Range:

+100 = extreme upward momentum (all periods were up)

-100 = extreme downward momentum (all periods were down)

0 = equal gains and losses over the period

1. Faster than RSI:

The CMO doesn’t smooth data as much as the standard RSI, so it reacts, I think, more sharply to price changes.

1. Interpretation Zones:

Above +50 → strong bullish momentum

Below -50 → strong bearish momentum

Crosses above 0 → momentum turning bullish

Crosses below 0 → momentum turning bearish

1. Overbought/Oversold:

+50 to +100 can be overbought
-50 to -100 can be oversold
But thresholds can be adjusted depending on volatility.

How I use it to trade:

• Trend Confirmation: If CMO is above zero during an uptrend, momentum is aligned.
• Overbought/Oversold Reversals: Look for extreme readings followed by a cross back toward zero.
• Divergence: When price makes new highs/lows but CMO fails to confirm.

# ------------------------------------------------
# adapted from Charles Schwab TOS
# Enhanced Chande Momentum Oscillator with Bias & Slope Alerts
# v.1 08/12/2025 enhanced by antwerks
# ------------------------------------------------
declare lower;

input length = 20;
input neutralZone = 5;  # Near zero tolerance

def inc = Max(close - close[1], 0);
def dec = Max(close[1] - close, 0);
def sumInc = Sum(inc, length);
def sumDec = Sum(dec, length);
def CMOvalue = if (sumInc + sumDec) == 0 then 0 else (sumInc - sumDec) / (sumInc + sumDec) * 100;

plot CMO = CMOvalue;
CMO.SetLineWeight(2);
CMO.AssignValueColor(
    if CMOvalue > neutralZone then Color.GREEN
    else if CMOvalue < -neutralZone then Color.RED
    else Color.YELLOW
);

plot ZeroLine = 0; ZeroLine.SetDefaultColor(Color.GRAY);
plot UpperLevel = 50; UpperLevel.SetDefaultColor(Color.GRAY);
plot LowerLevel = -50; LowerLevel.SetDefaultColor(Color.GRAY);

# --- Trend slope detection ---
def slopeUp = CMOvalue > CMOvalue[1];
def slopeDown = CMOvalue < CMOvalue[1];

# --- Labels based on momentum + slope ---
AddLabel(
    yes,
    if CMOvalue >= 50 then "VERY BULLISH"
    else if CMOvalue > 0 and slopeUp then "BULLISH"
    else if CMOvalue > 0 and slopeDown then "BULLISH BUT TRENDING DOWN"
    else if CMOvalue <= -50 then "STRONGLY BEARISH"
    else if CMOvalue < 0 and slopeDown then "BEARISH"
    else if CMOvalue < 0 and slopeUp then "BEARISH BUT TRENDING UP"
    else "NEUTRAL",
    if CMOvalue >= 50 then Color.DARK_GREEN
    else if CMOvalue > 0 and slopeUp then Color.GREEN
    else if CMOvalue > 0 and slopeDown then Color.ORANGE
    else if CMOvalue <= -50 then Color.RED
    else if CMOvalue < 0 and slopeDown then Color.RED
    else if CMOvalue < 0 and slopeUp then Color.CYAN
    else Color.YELLOW
);

# --- Alerts ---
Alert(CMOvalue > 0 and slopeDown, "Bullish but trending down", Alert.BAR, Sound.Chimes);
Alert(CMOvalue < 0 and slopeUp, "Bearish but trending up", Alert.BAR, Sound.Bell);

# ------------------------------------------------
# adapted from Charles Schwab TOS
# Enhanced Chande Momentum Oscillator with Bias & Slope Alerts
# v.1 08/12/2025 enhanced by antwerks
# ------------------------------------------------
declare lower;

input length = 20;
input neutralZone = 5; # Near zero tolerance
input cmoUpperExtreme = 50;
input cmoLowerExtreme = -50;
input showCMOClouds = yes;
input showExhaustionDots = yes;
input lookbackExhaustion = 5;


def inc = Max(close - close[1], 0);
def dec = Max(close[1] - close, 0);
def sumInc = Sum(inc, length);
def sumDec = Sum(dec, length);
def CMOvalue = if (sumInc + sumDec) == 0 then 0 else (sumInc - sumDec) / (sumInc + sumDec) * 100;

plot CMO = CMOvalue;
CMO.SetLineWeight(2);
CMO.AssignValueColor(
if CMOvalue > neutralZone then Color.GREEN
else if CMOvalue < -neutralZone then Color.RED
else Color.YELLOW
);

plot ZeroLine = 0; ZeroLine.SetDefaultColor(Color.GRAY);
plot UpperLevel = 50; UpperLevel.SetDefaultColor(Color.GRAY);
plot LowerLevel = -50; LowerLevel.SetDefaultColor(Color.GRAY);

# --- Trend slope detection ---
def slopeUp = CMOvalue > CMOvalue[1];
def slopeDown = CMOvalue < CMOvalue[1];

# --- Labels based on momentum + slope ---
AddLabel(
yes,
if CMOvalue >= 50 then "VERY BULLISH"
else if CMOvalue > 0 and slopeUp then "BULLISH"
else if CMOvalue > 0 and slopeDown then "BULLISH BUT TRENDING DOWN"
else if CMOvalue <= -50 then "STRONGLY BEARISH"
else if CMOvalue < 0 and slopeDown then "BEARISH"
else if CMOvalue < 0 and slopeUp then "BEARISH BUT TRENDING UP"
else "NEUTRAL",
if CMOvalue >= 50 then Color.DARK_GREEN
else if CMOvalue > 0 and slopeUp then Color.GREEN
else if CMOvalue > 0 and slopeDown then Color.ORANGE
else if CMOvalue <= -50 then Color.RED
else if CMOvalue < 0 and slopeDown then Color.RED
else if CMOvalue < 0 and slopeUp then Color.CYAN
else Color.YELLOW
);

AddCloud(
if showCMOClouds and CMOvalue > cmoUpperExtreme then CMOvalue else Double.NaN,
cmoUpperExtreme,
Color.DARK_GREEN,
Color.DARK_GREEN
);

AddCloud(
if showCMOClouds and CMOvalue < cmoLowerExtreme then cmoLowerExtreme else Double.NaN,
CMOvalue,
Color.DARK_RED,
Color.DARK_RED
);

def priceHH = high >= Highest(high, lookbackExhaustion);
def cmoLH = CMOvalue < Highest(CMOvalue, lookbackExhaustion);
def bullExhaust =
showExhaustionDots and
CMOvalue > cmoUpperExtreme and
priceHH and
cmoLH;

def priceLL = low <= Lowest(low, lookbackExhaustion);
def cmoHL = CMOvalue > Lowest(CMOvalue, lookbackExhaustion);
def bearExhaust =
showExhaustionDots and
CMOvalue < cmoLowerExtreme and
priceLL and
cmoHL;

plot BullExDot = if bullExhaust then CMOvalue else Double.NaN;
BullExDot.SetPaintingStrategy(PaintingStrategy.POINTS);
BullExDot.SetLineWeight(3);
BullExDot.SetDefaultColor(Color.YELLOW);

plot BearExDot = if bearExhaust then CMOvalue else Double.NaN;
BearExDot.SetPaintingStrategy(PaintingStrategy.POINTS);
BearExDot.SetLineWeight(3);
BearExDot.SetDefaultColor(Color.YELLOW);

# --- Alerts ---
Alert(CMOvalue > 0 and slopeDown, "Bullish but trending down", Alert.BAR, Sound.Chimes);
Alert(CMOvalue < 0 and slopeUp, "Bearish but trending up", Alert.BAR, Sound.Bell);
antwerks said:
The RSI is awesome, but the Chande Momentum Oscillator is awesomer!!! The Chande Momentum Oscillator (CMO) is a technical analysis indicator created by Tushar Chande that measures pure momentum in a security’s price, oscillating between +100 and -100.
It’s similar in spirit to RSI, but instead of comparing average gains and losses, it adds up all price changes (up and down) over a period and divides the net change by the total absolute changes — giving a percentage measure of net momentum.

In the chart below of TSLA, I have marked areas in the dashed lines of an aggressive entry/exit and solid lines a more conservative entry/exit examples using the supply and demand zones as final criterias
shared chart link: https://tos.mx/!CadtYHzG
Script for this indicator can found below
View attachment 25450
mod note:


Oscillator Formula
For a chosen period n:

CMO=100×Sum of Gains over n−Sum of Losses

Where the formula calculates the Sum of Gains = sum of all positive price changes during n and divides by the Sum of Losses = sum of absolute values of all negative price changes during n.

Key Characteristics
Bounded Range:
+100 = extreme upward momentum (all periods were up)

-100 = extreme downward momentum (all periods were down)

0 = equal gains and losses over the period
Faster than RSI:
The CMO doesn’t smooth data as much as the standard RSI, so it reacts, I think, more sharply to price changes.
Interpretation Zones:
Above +50 → strong bullish momentum

Below -50 → strong bearish momentum

Crosses above 0 → momentum turning bullish

Crosses below 0 → momentum turning bearish
Overbought/Oversold:
+50 to +100 can be overbought
-50 to -100 can be oversold
But thresholds can be adjusted depending on volatility.

How I use it to trade:
Trend Confirmation: If CMO is above zero during an uptrend, momentum is aligned.
Overbought/Oversold Reversals: Look for extreme readings followed by a cross back toward zero.
Divergence: When price makes new highs/lows but CMO fails to confirm.
Code:Copy to clipboard
# ------------------------------------------------
# adapted from Charles Schwab TOS
# Enhanced Chande Momentum Oscillator with Bias & Slope Alerts
# v.1 08/12/2025 enhanced by antwerks
# ------------------------------------------------
declare lower;

input length = 20;
input neutralZone = 5;  # Near zero tolerance

def inc = Max(close - close[1], 0);
def dec = Max(close[1] - close, 0);
def sumInc = Sum(inc, length);
def sumDec = Sum(dec, length);
def CMOvalue = if (sumInc + sumDec) == 0 then 0 else (sumInc - sumDec) / (sumInc + sumDec) * 100;

plot CMO = CMOvalue;
CMO.SetLineWeight(2);
CMO.AssignValueColor(
    if CMOvalue > neutralZone then Color.GREEN
    else if CMOvalue < -neutralZone then Color.RED
    else Color.YELLOW
);

plot ZeroLine = 0; ZeroLine.SetDefaultColor(Color.GRAY);
plot UpperLevel = 50; UpperLevel.SetDefaultColor(Color.GRAY);
plot LowerLevel = -50; LowerLevel.SetDefaultColor(Color.GRAY);

# --- Trend slope detection ---
def slopeUp = CMOvalue > CMOvalue[1];
def slopeDown = CMOvalue < CMOvalue[1];

# --- Labels based on momentum + slope ---
AddLabel(
    yes,
    if CMOvalue >= 50 then "VERY BULLISH"
    else if CMOvalue > 0 and slopeUp then "BULLISH"
    else if CMOvalue > 0 and slopeDown then "BULLISH BUT TRENDING DOWN"
    else if CMOvalue <= -50 then "STRONGLY BEARISH"
    else if CMOvalue < 0 and slopeDown then "BEARISH"
    else if CMOvalue < 0 and slopeUp then "BEARISH BUT TRENDING UP"
    else "NEUTRAL",
    if CMOvalue >= 50 then Color.DARK_GREEN
    else if CMOvalue > 0 and slopeUp then Color.GREEN
    else if CMOvalue > 0 and slopeDown then Color.ORANGE
    else if CMOvalue <= -50 then Color.RED
    else if CMOvalue < 0 and slopeDown then Color.RED
    else if CMOvalue < 0 and slopeUp then Color.CYAN
    else Color.YELLOW
);

# --- Alerts ---
Alert(CMOvalue > 0 and slopeDown, "Bullish but trending down", Alert.BAR, Sound.Chimes);
Alert(CMOvalue < 0 and slopeUp, "Bearish but trending up", Alert.BAR, Sound.Bell);
Click to expand...

with a few of additions....


# ------------------------------------------------
# adapted from Charles Schwab TOS
# Enhanced Chande Momentum Oscillator with Bias & Slope Alerts
# v.1 08/12/2025 enhanced by antwerks
# ------------------------------------------------
declare lower;

input length = 20;
input neutralZone = 5; # Near zero tolerance
input cmoUpperExtreme = 50;
input cmoLowerExtreme = -50;
input showCMOClouds = yes;
input showExhaustionDots = yes;
input lookbackExhaustion = 5;


def inc = Max(close - close[1], 0);
def dec = Max(close[1] - close, 0);
def sumInc = Sum(inc, length);
def sumDec = Sum(dec, length);
def CMOvalue = if (sumInc + sumDec) == 0 then 0 else (sumInc - sumDec) / (sumInc + sumDec) * 100;

plot CMO = CMOvalue;
CMO.SetLineWeight(2);
CMO.AssignValueColor(
if CMOvalue > neutralZone then Color.GREEN
else if CMOvalue < -neutralZone then Color.RED
else Color.YELLOW
);

plot ZeroLine = 0; ZeroLine.SetDefaultColor(Color.GRAY);
plot UpperLevel = 50; UpperLevel.SetDefaultColor(Color.GRAY);
plot LowerLevel = -50; LowerLevel.SetDefaultColor(Color.GRAY);

# --- Trend slope detection ---
def slopeUp = CMOvalue > CMOvalue[1];
def slopeDown = CMOvalue < CMOvalue[1];

# --- Labels based on momentum + slope ---
AddLabel(
yes,
if CMOvalue >= 50 then "VERY BULLISH"
else if CMOvalue > 0 and slopeUp then "BULLISH"
else if CMOvalue > 0 and slopeDown then "BULLISH BUT TRENDING DOWN"
else if CMOvalue <= -50 then "STRONGLY BEARISH"
else if CMOvalue < 0 and slopeDown then "BEARISH"
else if CMOvalue < 0 and slopeUp then "BEARISH BUT TRENDING UP"
else "NEUTRAL",
if CMOvalue >= 50 then Color.DARK_GREEN
else if CMOvalue > 0 and slopeUp then Color.GREEN
else if CMOvalue > 0 and slopeDown then Color.ORANGE
else if CMOvalue <= -50 then Color.RED
else if CMOvalue < 0 and slopeDown then Color.RED
else if CMOvalue < 0 and slopeUp then Color.CYAN
else Color.YELLOW
);

AddCloud(
if showCMOClouds and CMOvalue > cmoUpperExtreme then CMOvalue else Double.NaN,
cmoUpperExtreme,
Color.DARK_GREEN,
Color.DARK_GREEN
);

AddCloud(
if showCMOClouds and CMOvalue < cmoLowerExtreme then cmoLowerExtreme else Double.NaN,
CMOvalue,
Color.DARK_RED,
Color.DARK_RED
);

def priceHH = high >= Highest(high, lookbackExhaustion);
def cmoLH = CMOvalue < Highest(CMOvalue, lookbackExhaustion);
def bullExhaust =
showExhaustionDots and
CMOvalue > cmoUpperExtreme and
priceHH and
cmoLH;

def priceLL = low <= Lowest(low, lookbackExhaustion);
def cmoHL = CMOvalue > Lowest(CMOvalue, lookbackExhaustion);
def bearExhaust =
showExhaustionDots and
CMOvalue < cmoLowerExtreme and
priceLL and
cmoHL;

plot BullExDot = if bullExhaust then CMOvalue else Double.NaN;
BullExDot.SetPaintingStrategy(PaintingStrategy.POINTS);
BullExDot.SetLineWeight(3);
BullExDot.SetDefaultColor(Color.YELLOW);

plot BearExDot = if bearExhaust then CMOvalue else Double.NaN;
BearExDot.SetPaintingStrategy(PaintingStrategy.POINTS);
BearExDot.SetLineWeight(3);
BearExDot.SetDefaultColor(Color.YELLOW);

# --- Alerts ---
Alert(CMOvalue > 0 and slopeDown, "Bullish but trending down", Alert.BAR, Sound.Chimes);
Alert(CMOvalue < 0 and slopeUp, "Bearish but trending up", Alert.BAR, Sound.Bell);