Chande Dynamic Momentum Index Commodity Trading Technical Analysis & Chande DMI Trading Signals

Developed by Tushar Chande

Chandes DMI trading indicator is similar to Welles Wilder’s Relative Strength Index technical indicator, however, there is one very important difference.

RSI uses a fixed number of commodity price periods while the Chande Momentum Dynamic Index uses a variable amount of commodity price periods as market volatility changes.

The number of commodity price periods used by this Momentum Index trading indicator decreases as market volatility increases. This allows the technical indicator to be more responsive to commodity price changes.

The Chande DMI is more accurate than the RSI, has less whipsaws & is less Choppy

Commodities Trading Technical Analysis & How to Generate Trading Signals

Buy Trading Signal

A buy signal is generated when the DMI crosses above 50 level mark.

Buy Trading Signal

Sell Trading Signal

A sell signal is generated when the DMI crosses below 50 level mark.

Sell Trading Signal