Chande Dynamic Momentum Index Technical Analysis and Chande DMI Forex Signals
Developed by Tushar Chande
Chande DMI is similar to Welles Wilder’s Relative Strength Index (RSI), however, there is one very important difference.
Relative Strength Index uses a fixed number of price periods while the Chande Momentum Dynamic Index uses a variable amount of price periods as market volatility changes.
The number of price periods used by this Momentum Index decreases as market volatility increases. This allows the indicator to be more responsive to price changes.
The Chande DMI is more accurate than the RSI, has less whipsaws and is less Choppy
Forex Technical Analysis and How to Generate Trading Signals
Buy Forex Trading Signal
A buy Signal is generated when the DMI crosses above 50 level mark.
Buy FX Trading Signal
Sell Forex Trading Signal
A sell Signal is generated when the DMI crosses below 50 level mark.
Sell FX Trading Signal
