Chande Dynamic Momentum Index Gold Trading Analysis and Chande DMI Trading Signals

Developed by Tushar Chande

Chandes DMI trading indicator is similar to Welles Wilder’s Relative Strength Index technical indicator, however, there is one very important difference.

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

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

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

XAUUSD Analysis and Generating Trading Signals

Buy XAUUSD Signal

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

Buy Trading Signal

Sell XAUUSD Signal

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

Sell Trading Signal