Chandes Dynamic Momentum Index Gold Analysis and Chande DMI Trading Signals
Developed by Tushar Chandes
Chandes DMI 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 price periods while the Chandes 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 the market volatility increases. This allows the indicator to be more responsive to price changes.
The Chande DMI is more accurate than the RSI, has less whipsaw fakeouts and is less Choppy
Gold Analysis & Generating Signals
Buy Signal
A buy signal gets generated when DMI crosses above 50 level mark.
Buy Signal
Sell Signal
A sell signal gets generated when DMI crosses below the 50 level mark.
Sell Signal
