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Momentum
Price Momentum Oscillator
PMOApplies two successive EMAs to a rate-of-change calculation, producing a very smooth momentum oscillator. Developed by DecisionPoint, it is used to identify overbought/oversold conditions and momentum divergences on longer timeframes.
Tips
PMO’s heavy smoothing makes it best suited to weekly or monthly charts for identifying major trend changes rather than short-term entries
PMO diverging from a long price uptrend (lower PMO highs while price makes higher highs) is a reliable warning of an impending correction
Parameters
Short Period
2 - 100
Long Period
2 - 100
Signal
2 - 30