CMO For Loop | QuantLapse

CMO For Loop Indicator
The CMO For Loop indicator, inspired by Alex Orekhov's, "Chande Momentum Oscillator," and indicator originally made by Tushar Chande, the CMO designed as a fast and responsive tool to capture quick price movements in financial markets. This oscillator leverages Momentum to measure price deviations, providing a concise yet powerful framework for identifying potential trade entry and exit points. What makes this
"enhanced" CMO indicator special is its ability to identify trending periods more accurately. By using thresholds, this allows the script to enter accurate long and short conditions extremely quickly.

Intended Uses:
Used to capture long-term trends:

Used to identify quick reversals:


Recommended Uses

• Best suited for higher timeframes (8H+) to improve accuracy of signals.
  
• Designed for strategies that require fast entries and exits.
  
• Can also be applied to scalping approaches.
  

Not Recommended For

• Should not be used as a mean reversion tool.
  
• Should not be interpreted as a valuation indicator (overbought/oversold levels).
  

Key Features

Rapid Market Reaction
Built to prioritize speed over smoothing, making it ideal for traders who want to take advantage of quick price shifts in trending or highly volatile markets.

Flexible Thresholds
Users can customize the upper and lower CMO levels to trigger long or short conditions, allowing the indicator to adapt to different assets and trading styles.

Embracing the Noise
Signals may appear frequently, but this is intentional. The tool is optimized for traders who thrive on fast rotations, using the “noise” to catch short-lived yet impactful moves.

Clear Visual Feedback
Plots key oscillator levels and provides dynamic, color-coded candles and shapes that make it easy to identify bias and react quickly.

How It Works

Oscillator Calculation
The CMO (Chande Momentum Oscillator) is derived from comparing the source price’s deviations relative to its momentum. This approach emphasizes trend-driven price shifts.

Signal Triggers

When the oscillator rises above the upper threshold, a long bias is triggered and remains until the CMO drops below the lower threshold.

When the oscillator falls below the lower threshold, a short bias is triggered and remains until the CMO crosses back above the upper threshold.

No bias is active when the oscillator is between thresholds.

Visual Signals

Green candles = long bias

Red candles = short bias

Gray candles = neutral/no signal

Triangles mark points of change in signal direction.