Chande Dynamic Momentum Index Gold Analysis and Chande DMI Signals

Created by Tushar Chandes

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

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

The No. of price periods used by the Momentum Index indicator decreases as the price volatility increases. This allows the technical indicator to be more responsive to the price changes.

The Chandes DMI is more accurate than the RSI, has less whipsaw fakeouts and is less Choppy

Gold Analysis and Generating Signals

Buy Signal

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

Buy Signal

Sell Trading Signal

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

Sell Signal

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