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Lian,
CMO(20) on daily and weekly basis is a very well to be trusted investment and
momentum-strength measuring tool. In fact with a 20 SMA , crossings(see 2x att.)
can function perfectly as buy or sell signals but you have to remember it is a
pure momentum-indicator, e.g. sometimes already de-trending, diverging and
signaling at a ST-trends peak , thus , then not at your exact get-out-point.
To overcome this, my Default.tmp is set to "weekly" data, and when "open"ing charts
I change it, temperarely to "daily" to check if weekly outcome is still confirmed.
If there are different outcomes, "daily" signals are then a great warning!!!! for
a future's direction change. Otherwise ride the ST-trend.
I use it too as confirmations of break-outs and drop-outs. And for MT-trend
buy/sell signals.
Changing it to CMO(10) can function for you, but I prefer to stick to 20.
Toshar Chande has done excellent research, experimenting and developing
the CMO(20), and from my experience since Jul97, I desided to not change it.
Just last Sep97's change(daily) of ST-trend-direction was enough to wait for
the CMO(20) to confirm and I was not "experienced" enough to go full
in the market, would I have done so, I would have been very fortunate.
Since Nov97(daily)and since X-Mas/NewYear's day season(weekly) CMO(20)
has crossed upwards and up till now still shines!!!!.
Regards,
Ton Maas.
-----Oorspronkelijk bericht-----
Van: Lian PL <lianpl@xxxxxxxxxxxxxx>
Aan: metastock-list@xxxxxxxxx <metastock-list@xxxxxxxxx>
Datum: maandag 23 februari 1998 7:12
Onderwerp: Chande Momentum Oscillator
>Has anyone used CMO for trading and what do you think of CMO with 10 days
>as parameter?
>
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