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Registered User
Joined: 12/15/2008
Posts: 4
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Can a Chande Momentum Oscillator be added in the custom indicator menu of telechart 2007?
If not, is there another way to add this oscillator?
Has anyone done this or can you explain how I can add or use this in Telechart?
Thank you.
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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Welcome to the forums. A very good foundation for learning how to use TeleChart can be gained by reviewing the following:
If you are new to TeleChart READ THIS FIRST!
Please try the following to Plot a 14-Period Chande Momentum Oscillator (CMO):
Select Chart Template | Add Indicator | Indicator.
- Visible: Checked
- Center Zero Line: Checked
- Plot using price scale: Unchecked
- Smoothing Average: 1
- Average Type: Doesn't matter (because the Smoothing Average is 1)
- Indicator Formula: 100 * (C - C14) / (ABS(C - C1) + ABS(C1 - C2) + ABS(C2 - C3) + ABS(C3 - C4) + ABS(C4 - C5) + ABS(C5 - C6) + ABS(C6 - C7) + ABS(C7 - C8) + ABS(C8 - C9) + ABS(C9 - C10) + ABS(C10 - C11) + ABS(C11 - C12) + ABS(C12 - C13) + ABS(C13 - C14))
You may wish to review the following:
Plotting Custom Indicators with Examples
How to create a Personal Criteria Forumula (PCF)
PCF Formula Descriptions
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 12/15/2008
Posts: 4
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Bruce,
Thank you very much for you help.
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Registered User
Joined: 1/1/2005
Posts: 2,645
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QUOTE (Bruce_L) 100 * (C - C14) / (ABS(C - C1) + ABS(C1 - C2) + ABS(C2 - C3) + ABS(C3 - C4) + ABS(C4 - C5) + ABS(C5 - C6) + ABS(C6 - C7) + ABS(C7 - C8) + ABS(C8 - C9) + ABS(C9 - C10) + ABS(C10 - C11) + ABS(C11 - C12) + ABS(C12 - C13) + ABS(C13 - C14))
Bruce,
Please notice that the above PCF can be weitten more compactly as:
2*RSI14-100
Thanks,
Jim Murphy
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Registered User
Joined: 1/1/2005
Posts: 2,645
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grs5,
There is no need for a separate CMO Indicator since it is just a rescaling of RSI to range from -100 to +100 instead of from 0 to 100.
This is similar to Williams %R in that there is no need for a separate %R Indicator since it is just a rescaling of STOC to range from -100 to 0 instead of from 0 to 100.
Thanks,
Jim Murphy
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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bustermu,
I should have recognized an unsmoothed RSI for what it was. Besides, I think you've pointed out the link between them before in the process of demonstrating a simpler way to write RSI formulas.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 12/17/2004
Posts: 17
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I too am interested in having an accurate CMO indicator in TC2000. I have implemented the RSI substitution as recommended above, but while the are close they are not exact (when comparing the results in TC2000 and two other charting programs that natively support the CMO indicator).
Here is what I have found describing the differences between the CMO and various RSI indicators:
The CMO is closely related to, yet differs from, other momentum-oriented indicators such as the Relative Strength Index (RSI), Stochastics, Rate-of-Change, etc. It is most closely related to Welles Wilder’s RSI, but differs from it in several ways:
- It uses data for both up days and down days in the numerator of the calculation, thereby directly measuring momentum.
- The calculations are applied to unsmoothed data, so short-term extreme price movements are not hidden. Once calculated, the CMO can be smoothed if desired.
- The scale is bounded between +100 and -100, letting you clearly see changes in net momentum around the 0 level. The bounded scale also allows you to conveniently compare values across different securities.
Any help would be most gratefully appreciated.
Steve R
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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The Chande Momentum Oscillator may differ from a Wilder's Smoothed RSI, but it does not differ from the unsmoothed RSI in either version of TC2000 in anything other than scale. The technique given by bustermu works perfectly as the RSI in the Personal Criteria Formula Language as given by bustermu is unsmoothed.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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