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