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