PMO Pass Node
Price Momentum Oscillator — Series Input
Overview
The PMO Pass Node computes the Price Momentum Oscillator (PMO) and its signal line on a series input. PMO applies double EMA smoothing to a scaled rate-of-change — the result is a smooth momentum oscillator that closely tracks price velocity without the jaggedness of raw ROC.
Developed by Carl Swenlin, PMO is unbounded but centers around zero. The signal line (EMA of PMO) is used for crossover strategies — PMO crossing above its signal is bullish, crossing below is bearish. It is particularly useful on weekly data for detecting major trend changes.
Formula
Parameters
| Parameter | Default | Description |
|---|---|---|
| period1 | 35 | First EMA period applied to scaled ROC |
| period2 | 20 | Second EMA period applied to first smoothed result |
| signalPeriod | 10 | EMA period for the PMO signal line |
Inputs & Outputs
| Slot | Direction | Type | Description |
|---|---|---|---|
| input | Input | { values, timestamps } | Price or any numeric series |
| values | Output | (number | null)[] | PMO signal line values; nulls during warm-up |
| timestamps | Output | number[] | Unix timestamps aligned to input |
Use Cases
Signal-Line Crossover
When PMO crosses above its signal line, it indicates building bullish momentum — a buy signal. Crossing below generates a sell signal. The slow periods make these signals reliable but infrequent.
Zero-Line Regime Filter
PMO above zero with rising signal line defines a bullish regime. PMO below zero with falling signal line defines a bearish regime. Use this for broader portfolio allocation decisions.
Divergence Analysis
PMO diverging from price at tops and bottoms provides early warning of trend exhaustion. Because PMO is double-smoothed, its divergence signals are more reliable than raw momentum divergences.
Tips & Best Practices
Large Warm-Up Period
Default periods (35+20+10) require 65+ bars before valid output. On daily data this is more than 3 months. Ensure sufficient historical data before relying on PMO signals.
Best on Daily / Weekly
The slow default periods make PMO most effective on daily and weekly charts. On intraday data, reduce all three periods proportionally (e.g., period1=10, period2=6, signalPeriod=3).
Scaling Multiplier
The ×10 scaling factor in the ROC calculation is by design — it brings the PMO into a readable numeric range. This does not affect signal quality but keeps the y-axis scale consistent across assets.