HPotter

CMO Oscillator with Filter

Hi
Let me introduce my CMO Oscillator with Filter script.
This indicator plots a CMO             which ignores price changes which are less
than a threshold value. CMO             was developed by Tushar Chande. A scientist,
an inventor, and a respected trading system developer, Mr. Chande developed
the CMO             to capture what he calls "pure momentum". For more definitive
information on the CMO             and other indicators we recommend the book The New
Technical Trader by Tushar Chande and Stanley Kroll.
The CMO             is closely related to, yet unique from, other momentum oriented
indicators such as Relative Strength Index , Stochastic , Rate-of-Change, etc.
It is most closely related to Welles Wilder`s RSI , yet it differs in several ways:
- It uses data for both up days and down days in the numerator, thereby directly
measuring momentum;
- The calculations are applied on unsmoothed data. Therefore, short-term extreme
movements in price are not hidden. Once calculated, smoothing can be applied to the
CMO             , if desired;
- The scale is bounded between +100 and -100, thereby allowing you to clearly see
changes in net momentum using the 0 level. The bounded scale also allows you to
conveniently compare values across different securities.
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////////////////////////////////////////////////////////////
//  Copyright by HPotter v1.0 19/04/2014
// This indicator plots a CMO which ignores price changes which are less 
// than a threshold value. CMO was developed by Tushar Chande. A scientist, 
// an inventor, and a respected trading system developer, Mr. Chande developed 
// the CMO to capture what he calls "pure momentum". For more definitive 
// information on the CMO and other indicators we recommend the book The New 
// Technical Trader by Tushar Chande and Stanley Kroll.
// The CMO is closely related to, yet unique from, other momentum oriented 
// indicators such as Relative Strength Index, Stochastic, Rate-of-Change, etc. 
// It is most closely related to Welles Wilder`s RSI, yet it differs in several ways:
// - It uses data for both up days and down days in the numerator, thereby directly 
// measuring momentum;
// - The calculations are applied on unsmoothed data. Therefore, short-term extreme 
// movements in price are not hidden. Once calculated, smoothing can be applied to the 
// CMO, if desired;
// - The scale is bounded between +100 and -100, thereby allowing you to clearly see 
// changes in net momentum using the 0 level. The bounded scale also allows you to 
// conveniently compare values across different securities.
////////////////////////////////////////////////////////////
fFilter(xSeriesSum, xSeriesV, Filter) =>
    iff(xSeriesV > Filter, xSeriesSum, 0)

study(title="CMOfilt", shorttitle="CMOfilt")
Length = input(9, minval=1)
Filter = input(3, minval=1)
TopBand = input(70, minval=1)
LowBand = input(-70, maxval=-1)
hline(0, color=gray, linestyle=line)
hline(TopBand, color=red, linestyle=line)
hline(LowBand, color=green, linestyle=line)
xMom = close - close[1]
xMomAbs = abs(close - close[1])
xMomFilter = fFilter(xMom, xMomAbs, Filter)
xMomAbsFilter = fFilter(xMomAbs,xMomAbs, Filter)
nSum = sum(xMomFilter, Length)
nAbsSum = sum(xMomAbsFilter, Length)
nRes =   100 * nSum / nAbsSum
plot(nRes, color=blue, title="CMOfilt")
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BTC: 1Lo1GoTNsPbrjGAgPgF4MYZPhBFdoVHaTm
Looks like CMO works really well at finding true divergences. Nice Work!
Reply
HPotter PRO QuantitativeExhaustion
Thank you.
Reply
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