Chande Dynamic Momentum Index Forex Technical Analysis and Chande DMI Forex Trading 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 Generating Forex Trading Signals
A buy Signal is generated when the DMI crosses above 50 level mark.
A sell Signal is generated when the DMI crosses below 50 level mark.