Start with the honest part. The chande momentum oscillator indicator does not implement Tushar Chande’s formula. Its source computes a plain momentum ratio, the close over the close twelve bars back, and it even names the plot Momentum. A usable reading, just not the one the name promises.
This build ships as a compiled .ex4 for MT4 and .ex5 for MT5; the screenshots below come from EURUSD H1.
| Platforms | MT4 (.ex4) + MT5 (.ex5) |
|---|---|
| Chart window | Separate window |
| Plots | 1: Momentum |
| Alerts | popup, push notification, email, sound |
| Inputs | 7 |
What the Chande Momentum Oscillator Indicator draws on the chart
A single plot below price.
`Momentum` runs light coral.
The reading centres on one hundred.
No second line and no arrows appear.
Nothing reaches the price chart.
No ceiling or floor bounds the scale.
- Momentum: plot, light coral
How the Chande Momentum Oscillator Indicator calculates its values
A simple ratio
One division does it. The current close over the close `Period` `12` bars back, times a hundred. So a hundred means price is exactly where it was.
What Chande’s version does
His formula does different arithmetic. It sums up moves and down moves apart, then compares the two on a scale running from minus one hundred to plus one hundred.
Why the distinction matters
The two behave differently. A ratio drifts with the price level. Chande’s bounded reading does not, so an overbought rule written for one will mislead you on the other.
How to read the signals
A hundred means no change across the window.
Above a hundred, price beats twelve bars ago.
Below it, price trails.
Nothing bounds the scale, so extremes vary by symbol.
The reading says how far, not how steadily.
Twelve bars is a short window.
Alert channels in this build: popup, push notification, email and sound, one message per closed bar.
Four routes sit under `EnableAlerts`, true from the start with `EnablePopup`. Flip `EnablePushNotify` for a handset, `EnableEmail` to post mail, or `EnableSound` to play `SoundFile`. The other three begin switched off.
Every Chande Momentum Oscillator Indicator input
Core settings
| Setting | What it does | Default |
|---|---|---|
Period |
Bars back the ratio reaches, `12`. | 12 |
Alert settings
| Setting | What it does | Default |
|---|---|---|
EnableAlerts |
Top control over the messages, `true`. | on |
EnablePopup |
Terminal message, `true`. | on |
EnablePushNotify |
Handset push, `false`. | off |
EnableEmail |
Outgoing mail, `false`. | off |
EnableSound |
Play a clip, `false`. | off |
SoundFile |
Clip it plays, `”alert.wav”`. | alert.wav |
Settings that fit your chart
A twelve-bar comparison is short whichever chart it runs on. EURUSD H1 is the reference chart. That covers half a day there. On M5 the reading swings all session. On daily bars it tracks a fortnight of movement.
When the Chande Momentum Oscillator Indicator fails
The name promises a formula the source lacks.
An unbounded ratio carries no fixed overbought level.
Only two closes matter, so the path between them drops out.
One gap can move the reading with no trend behind it.
Copy the compiled Chande Momentum Oscillator Indicator file into your MQL4/Indicators folder, and the MT5 build into MQL5/Indicators, then restart the terminal and drag it onto a chart. The step-by-step guide with screenshots is at how to install MT4 and MT5 indicators.
Download the Chande Momentum Oscillator Indicator for MT4 and MT5
The zip holds the compiled Chande Momentum Oscillator Indicator build for MT4 and MT5, plus a short README. Compiled files only, no source. Enter your email below and the download link arrives in your inbox.
Download this indicator free
Enter your email and the file is yours. You also get the full MT4 and MT5 library.
FAQ
Is this really Chande’s momentum oscillator?
No, and the plot name gives it away. The source divides the close by the close twelve bars back, which is plain momentum. Chande’s formula sums up and down moves apart and yields a bounded reading instead.
Which two prices does Period 12 divide?
The current close and the close twelve bars earlier, nothing else. Everything between those two bars drops out, which is why the reading can miss a sharp move that fully retraced.
What level does the Momentum plot pivot on?
A hundred, because `Period` `12` divides rather than subtracts. Two equal closes give exactly that figure, so it does the job the zero line does on an oscillator built from a difference.
Can the Momentum plot carry an overbought level?
Not a universal one. Nothing bounds the scale, and how far it travels depends on the symbol, so any level has to be found by eye per market rather than borrowed from another chart.
Are results guaranteed?
No. Trading involves risk. Results are not guaranteed; past performance is not indicative of future results. Use the Chande Momentum Oscillator Indicator as one input. Always backtest before trading live.
Category: this is part of our Oscillators collection. Also, still, hence, truly, hence, truly, browse more Oscillators for MetaTrader, or explore every MT4 indicator and MT5 indicator on the site.
External references
- For background on this concept, see Moving Momentum at StockCharts ChartSchool.
- For broader market context, see imomentum (MOMENTUM) at the MQL5 Documentation.
About the author
Written by Dominic Walsh, a Forex trader and MT4/MT5 indicator, Expert Advisor and script developer. Every tool on forexmt4systems.com is tested on live charts before release and ships with ready-to-use compiled MT4 (.ex4) and MT5 (.ex5) files. Learn more about the trader and developer behind this site.
How we build, test and correct every tool: Editorial & Testing Policy. Trading carries risk; see the disclaimer.