Chandes Dynamic Momentum Technical Analysis & Chande DMI Trading Signals
Developed by Tushar Chande
Chandes DMI is similar to Welles Wilder's RSI, however, there's one very crucial difference.
Relative Strength Index uses a fixed number of stock price periods while the Chandes 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 price volatility increases. This allows the indicator to be more responsive to stock trading price changes.
The Chande DMI is more accurate than the RSI, has less fake outs and is less Choppy
Index Technical Analysis and Generating Signals
Buy Trading Signal
A buy trade signal is generated when the DMI crosses above 50 level mark.
Buy Signal
Sell Signal
A sell signal is generated when the DMI crosses below the 50 level mark.
Sell Signal
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