Chandes Dynamic Momentum Index Commodities Technical Analysis and Chande DMI Trading Signals

Developed by Tushar Chandes

Chande DMI indicator is similar to Welles Wilder's RSI indicator, however, there's 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 trading indicator decreases as the 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

Commodity Analysis & How to Generate Trading Signals

Buy Trade 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 the 50 level mark.

Sell Trading Signal