Chande Dynamic Momentum Index Technical Analysis & Chande DMI Signals

Created by Tushar Chandes

Chande DMI indicator is similar to Welles Wilder's RSI indicator, however, there's 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 indicator decreases as the market volatility increases. This allows the indicator to be more responsive to cfds price changes.

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

CFDs Analysis & How to Generate Signals

Buy Signal

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

Buy Signal

Sell CFDs Signal

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

Sell CFDs Signal