Chandes Dynamic Momentum Index Energies Technical Analysis & Chande DMI Trading Signals

Developed by Tushar Chandes

Chande's DMI indicator is similar to Welles Wilder's RSI indicator, however, there is one very important difference.

Relative Strength Index uses a fixed number of energies price periods while the Chande Momentum Dynamic Index uses a variable amount of energies price periods as market volatility changes.

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

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

Technical Analysis & How to Generate Trading Signals

Buy Trading Signal

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

Buy Trading Signal

Sell Trading Signal

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

Sell Trading Signal