Chande Dynamic Momentum Indices Technical Analysis and Chande DMI Trading Signals
Developed by Tushar Chande
Chande DMI is similar to Welles Wilder’s RSI, however, there is one very important difference.
Relative Strength Index uses a fixed number of stock indices trading price periods while the Chande Momentum Dynamic Index uses a variable amount of stock indices trading price periods as market volatility changes.
The number of stock indices trading 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 stock indices trading price changes.
The Chande DMI is more accurate than the RSI, has less whipsaws & is less Choppy
Indices Technical Analysis & Generating Trading Signals
Buy Trading Signal
A buy signal is generated when DMI crosses above 50 level mark.
Buy Trading Signal
Sell Trading Signal
A sell signal is generated when DMI crosses below the 50 level mark.
Sell Trading Signal
