Forex Chande Momentum Oscillator Trading Strategy
Forex Chande Momentum Oscillator Trading Strategy:
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 forex a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, quantifiability, consistency, and objectivity.
For every trading strategy one needs to define assets to trade, entry/exit points and money management rules.
How to install Forex Chande Momentum Oscillator Trading Strategy?
- Download Forex Chande Momentum Oscillator Trading Strategy.zip
- Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy tpl file (Template) to your Metatrader Directory / templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex strategy
- Load indicator on your chart
How to uninstall Forex Chande Momentum Oscillator Trading Strategy?
To shut down an indicator, one has to remove it from the chart. At that, its drawing and recalculation of its values will stop. To remove an indicator from the chart, one has to execute its context menu commands of “Delete Indicator” or “Delete Indicator Window”, or the chart context menu command of “Indicators List – Delete”.
