Thank you LazyBear for sharing this 'Composite Momentum Index' by Tushar Chande. I noticed a small similarity to William Blau's 'Stochastic Momentum Index', so I created a comparison. Both indicators in my test use the default signal period 5 and a smoothing period of 3:
(I removed your cool color feature for a clearer comparison)
Conclusion: There does not seem to be a clear winner in this comparison, so my recommendation would be to use both indicators to watch the momentum. Here is the 'Stochastic Momentum Index' coded by UCS Gears: tradingview.com/script/xd8t6hai-Stochastic-Momentum-Index-UCSgears/
P.S. Both technical analysts are engineers. Tushar Chande holds a Ph.D. in metallurgical engineering from the University of Illinois. And William Blau holds a bachelor's degree in electrical engineering from NYU and a master's in systems engineering and operations research from the University of Pennsylvania.
LazyBear
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Thanks for the comparison. SMI has TSI in its core (& 5 is the "ergodic" according to Blau), while CMO derives from MOM indirectly too. So, no wonder they all look alike at the end of the day :)
BTW, this is the SMIIO vs the inbuilt SMI vs CMI.
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ChartArt
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Now I get confused. What is the difference between:
How can I have this Indicator "Composite Momentum Index"? I would like to using in my trades. How much is the cost.
Waiting for your response
Carlos