101# Chande Momentum Oscillator (CMO) Trading System

Submit By Joy22 10/07/2012

This is another trading system, but is free free for all !!!!

Description

This is a simple system that looks for overbought and oversold conditions to

 enter the market so it works best in non trending markets but will still deliver a

 nice constant, positive equity curve.

Markets:any

Time Frame:15 min of Higher

Technical Indicators:

Relative Strength Index indicator (RSI period 9)

Chande Momentum oscillator (CMO period 13)

Chande Momentum oscillator

This is a technical momentum indicator invented by the technical analyst Tushar

 Chande. It calculates the difference between the sum of all recent gains and the

 sum of all recent losses and then divides the result by the sum of all price

 movement over the period. It is similar to other momentum indicators such as the Relative Strength Index and the Stochastic Oscillator as it is range bounded (+100 and -100).

Formulas:
CMO=(s1-s2)/(s1+s2)*100, where
s1=SMA(cmo1) with Length as period,
s2=SMA(cmo2) with Length as period,
cmo1 - sum of positive deviation of price, 
cmo2 - sum of negative deviation of price

Rules:Trading System Reversal Chande Momentum Oscillator (CMO) and Relative Strength Index indicator (RSI)

For long trades

1. RSI must be above 30

2. Chande momentum oscillator must be below -50.

For Short trades

1. RSI must be above 70

2. Chande momentum oscillator must be below 50.

Exit Position

Stop Loss:

15 min time frame 20 pips above or below the previous swing.

30 min time frame 25 pips “ “

60 min time frame 30 pips; “ “

240 min time Frame 60-80 pips; “ “

Daily time frame 100-120 pips “ “

Profit Target: Depends by Currency pairs and by the volatility.

15 min time frame 20-30 pips;

30 min time frame 30-50 pips;

60 min time frame 50-70 pips;

240 min time frame 80-120;

Daily time frame 150-250.

This Trading System not Work good in Trending market and i have add an indicator filter for range market.

The Indicator is Corona SNR , Trades with the previous same conditions but only when Corona SNR indicator >6.

In the picture belowTrading System Reversal Chande Momentum Oscillator (CMO) and Relative Strength Index indicator (RSI) in action.

In the pictures belowTrading System Reversal Chande Momentum Oscillator (CMO) and Relative Strength Index indicator (RSI) with filter in action.

Share your opinion, can help everyone to understand the trading system.

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