Chande Dynamic Momentum Index Forex Trading Technical Analysis & Chande DMI 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 indicator decreases as market volatility increases. This allows the technical indicator to be more responsive to price changes.
The Chande DMI is more accurate than the RSI, has less whipsaws & is less Choppy
Forex Trading Analysis and Generating Signals
Buy Trading Signal
A buy signal is generated when DMI crosses above 50 level mark.
Buy Signal
Sell Trading Signal
A sell signal is generated when DMI crosses below the 50 level mark.
Chande DMI Forex Indicator Sell Trading Signal
