Chandes Dynamic Momentum Technical Analysis & Chande DMI 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 trading price periods while the Chande Momentum Dynamic Index uses a variable amount of stock trading price periods as market volatility changes.

The number of stock trading price periods used by this Momentum Index indicator decreases as the market volatility increases. This allows the technical indicator to be more responsive to stock trading price changes.

The Chande DMI is more accurate than the RSI, has less whipsaws and is less Choppy

Indices Technical Analysis and Generating Trade Signals

Buy Trade Signal

A buy signal gets generated when DMI crosses above 50 level mark.

Buy Trading Signal

Sell Trading Signal

A sell signal gets generated when DMI crosses below the 50 level mark.

Sell Trade Signal