Chande Momentum Oscillator (CMO) – FX Replay Guide

The CMO Indicator in FX Replay is a powerful tool for evaluating bullish/bearish momentum across sessions. It’s ideal for timing reversals, confirming trend strength, and catching volume-supported breakouts when paired with tools like VWAP, SMMA, or PO3 cycles.

How to Use It in FX Replay

Add the Indicator:

• Go to the Indicators panel.
• Search for “Chande Momentum Oscillator” or “CMO”.
• Apply it with a standard 20-period setting or customize based on your strategy.

Reading the Levels:

• CMO > +50 → overbought territory → possible short setup or fade.
• CMO < -50 → oversold territory → possible long setup or bounce.
• CMO near 0 = low conviction, range-bound or accumulation phase.

Trade Triggers:

• Bullish Reversal:
  • CMO crosses above -50 from oversold → look for VWAP reclaim, PO3 accumulation, or bullish fractal.
• Bearish Reversal:
  • CMO crosses below +50 from overbought → pair with break of structure, volume divergence, or Alligator turn.

Strategy Integration:

• Pair CMO with:
  • SMMA or Supertrend for trend filtering.
  • Zeussy Time Cycles to time entries within AMD 30/90 or NY AM blocks.
  • Fractals to time breakout or reversal setups at structure edges.

Backtest Tag Ideas:

• “CMO cross + VWAP reclaim → long”
• “PO3 manipulation + CMO divergence → reversal trade”
• “CMO > +70 + FVG short setup”

Pro Tip

In FX Replay, CMO excels when used to:

• Confirm reversal trades from oversold/overbought zones.
• Filter setups during session opens (e.g., NY AM spike + CMO divergence).
• Detect momentum exhaustion before false breakouts or traps.

Use it to refine:

• Entry confidence (e.g., wait for cross + structure break).
• Risk context (e.g., avoid chasing when CMO already peaked).
• Reversal spotting at PO3 highs/lows when paired with volume shifts.

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