Chandes Dynamic Momentum Index Technical Analysis and Chandes DMI Signals
Developed by Tushar Chande
Chande DMI is similar to Welles Wilder's Relative Strength Index (RSI), however, there one very important difference.
RSI uses 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 trading indicator decreases as the market volatility increases. This allows the technical 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 & How to Generate Signals
Buy Trade Signal
A buy signal is generated when DMI crosses above 50 level mark.
Buy Trade Signal
Sell Trading Signal
A sell trade signal is generated when DMI crosses below the 50 level mark.
Sell Trade Signal
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