HOW TO TRADE FOREX WITH CHANDES MOMENTUM OSCILLATOR CMO ~ forex trading companies in new york
Chandes Momentum Oscillator (CMO) was developed by Tushar Chande and Stanley Kroll. It is classified as oscillator because it is a range bound technical indicator. This post explains the techniques of trading forex with this technical indicator.
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| Source:metatrader4.com |
Chandes Momentum Oscillator (CMO) is similar to RSI oscillator. It moves between the range of -100 to +100. The range can be customized also, if the traders think necessary. The trading technique with this indicator is similar to the trading technique with RSI indicator.
CMO explains the oversold and over bought conditions. When the CMO gives a reading above +100, it indicates over bought condition and, suggests to place a sell order. In other way, when the CMO gives a reading below -100, it indicates over sold condition, and suggests a buy order.
As with other oscillators, trading with divergence and convergence technique can be applied with this indicator also. Read the linked post above to learn the forex trading with divergence and convergence.
Moving Average(9) and Chandes Momentum Oscillator (CMO) can be applied on a single window to get the entry and exit signal. A buy order is placed when the moving average cross the Chandes Momentum Oscillator (CMO) from down, and a sell order is placed when the moving average cross the Chandes Momentum Oscillator (CMO) from up. A buy order is closed when the sell signal appears, and a sell order is closed when a buy order is appeared. See the image below to understand the above technique.
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| Source:metatrader4.com |
Dear Traders, these are the forex trading technique with Chandes Momentum Oscillator (CMO. If you have any unique trading techniques, please share with us, dropping a comment below. If you want to ask me any question please mention me on twitter @albab247.
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