The Chande Momentum Oscillator was developed by Tushar Chande in 1994 as a more sensitive alternative to RSI. The math is similar to RSI in concept — measure the strength of price movement direction — but Chande dropped RSI’s moving-average smoothing in favour of raw sums. The result is a single line oscillating between -100 and +100 (RSI is 0 to 100), with reversal zones at ±50.
CMO is faster than RSI and shows momentum extremes more dramatically, which makes it useful for traders who find RSI too smooth. The cost is more false signals — without RSI’s smoothing, every minor swing shows up.
What is the Chande Momentum Oscillator?
CMO sums the up-day price changes and the down-day price changes over the lookback period (default 14). It then takes (sum_up – sum_down) divided by (sum_up + sum_down), multiplied by 100. The output ranges from -100 (all down-days) through 0 (balanced) to +100 (all up-days).
The key mechanical difference vs RSI: no internal smoothing. RSI uses an EMA of average gains and losses, which adds lag but reduces noise. CMO uses raw sums, which makes it faster but choppier.
The ±50 levels are Chande’s defined reversal zones — significantly wider than RSI’s 70/30 thresholds.
How CMO Works on MT4
CMO isn’t built into MT4. Install our custom version – see install custom indicators on MT4.
Three signals matter:
The ±50 reversal zones. CMO crossing back through +50 from above is a sell signal; through -50 from below is a buy signal. Same idea as RSI’s 70/30 but at different thresholds.
The zero-line cross. CMO crossing zero confirms a directional bias change.
Divergence works on CMO with the standard mechanics — price higher highs while CMO prints lower highs is bearish divergence. CMO’s higher sensitivity actually produces MORE divergence signals than RSI, but with a higher false-positive rate.
Key Features
- -100 to +100 scale (centred on zero)
- ±50 reversal thresholds (wider than RSI’s 70/30)
- No internal smoothing — faster than RSI but noisier
- Non-repainting once candles close
- Configurable period (default 14)
- Single line for clean readability
Best Settings for CMO Indicator
| Parameter | Scalping | Day Trading | Swing Trading |
|---|---|---|---|
| Period | 9 | 14 | 20 |
| Upper Level | +60 | +50 | +50 |
| Lower Level | -60 | -50 | -50 |
Recommended starting point: Period 14 with ±50 levels on H1.
Pros and Cons
| Pros | Cons |
|---|---|
| Faster than RSI – catches momentum changes earlier | More false signals due to lack of smoothing |
| -100/+100 scale shows direction more clearly than RSI’s 0-100 | Less popular than RSI – sparse trading literature |
| Effective for divergence detection | Not built into MT4 – requires custom install |
| Non-repainting, suitable for backtesting | Requires trend filter to avoid counter-trend whipsaws |
How to Install CMO on MT4
Step 1: Download CMO.ex4 (link below).
Step 2: Drop into MQL4/Indicators via File > Open Data Folder.
Step 3: Refresh Navigator (Ctrl+N), drag CMO onto chart.
Step 4: Set Period 14. Add ±50 levels. Click OK.
Trading Strategy: CMO ±50 Reversal with Trend Filter
Setup: CMO(14) with ±50 levels on H1. 50 EMA on price.
Buy Signal:
1. Price is above the 50 EMA (uptrend bias)
2. CMO drops below -50 (oversold extreme)
3. CMO crosses back above -50
4. Enter long on next candle close
Sell Signal:
1. Price is below the 50 EMA (downtrend bias)
2. CMO rises above +50 (overbought extreme)
3. CMO crosses back below +50
4. Enter short on next candle close
Stop Loss: Beyond recent swing extreme.
Take Profit: 1:2 R:R or trail by the 50 EMA.
The trend filter is critical. Without it CMO’s higher sensitivity produces too many losing counter-trend trades.
CMO vs RSI
| Feature | CMO | RSI |
|---|---|---|
| Scale | -100 to +100 | 0 to 100 |
| Reversal thresholds | ±50 | 70 / 30 |
| Smoothing | None (raw sums) | EMA-based |
| Speed | Faster | Slower |
| False signal rate | Higher | Lower |
Verdict: CMO when you find RSI too slow and want earlier reversal signals. RSI when you want clean reads with fewer false signals. Most traders are better served by RSI; CMO is for those who specifically need the speed advantage.
Frequently Asked Questions
Is the CMO indicator free?
Yes. Custom version below.
Does CMO repaint?
No.
CMO vs RSI – which to use?
RSI is the safer default. CMO is the choice when RSI’s smoothing makes signals too late for your style.
Best timeframe for CMO?
H1 with strict trend filter. M5/M15 generates too much noise.
Can I use CMO on MT5?
Yes.
Download CMO Indicator for MT4 – Free
- Multi-timeframe display
- ±50 cross alerts
- Divergence detection
Platform: MT4 (Build 1000+)
File type: .ex4
File size: 12 KB
Version: 1.7
Last updated: April 2026
Download the CMO Indicator – Free Instant Access
No payment. No catch. Enter your email below and the CMO Indicator file lands in your inbox within 60 seconds:
- The non-repainting CMO Indicator file (.ex4)
- Step-by-step installation guide
- Best-performing settings for day trading
- The exact ±50 reversal rules I use in live trading
- Weekly trading insights from a developer with 16+ years of market experience
Download the Chande Momentum Oscillator Indicator – Free Instant Access
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- The non-repainting Chande Momentum Oscillator Indicator file (.ex4) – install in 30 seconds
- Step-by-step installation guide with chart screenshots
- Best-performing settings for scalping, day trading, and swing trading
- The exact entry and exit rules Dom uses in live trading
- Weekly trading insights from a developer with 16+ years of market experience
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Overall Rating: 4.0/5
| Category | Rating |
|---|---|
| Accuracy | 4.0/5 |
| Ease of Use | 4.2/5 |
| Features | 3.9/5 |
| Value | 4.1/5 |
Related Indicators
- RSI Indicator MT4 – The smoother predecessor of CMO
- Stochastic RSI MT4 – Another RSI sensitivity enhancement
- Stochastic Oscillator MT4
- Best Oscillator Indicators for MT4
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