The StochCMO is an indicator used in that ranges between zero and one and is created by applying the Oscillator formula to a set of (CMO) values rather than standard price data. Using CMO values within the formula gives traders an idea of whether the current CMO value is overbought or oversold - a measure that becomes specifically useful when the CMO value is confined between its signal levels of 20 and 80.
The usage of StochCMO is similar to StochRSI.
StochCMO vs StochRSI:
The difference between these indicators can be realized by comparing CMO & RSI:
CMO is similar to the ( ) except that it measures momentum on both up days and down days. The CMO also does not use internal smoothing and thus does not obscure short-term extremes in momentum. As a result, the CMO often reaches over bought and over sold areas more regularly than momentum indicators, such as the , that have internal smoothing.
Hope it helps you.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.