Chande Dynamic Momentum Index Gold Trading Analysis and Chande DMI Trading Signals

Created 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 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

XAUUSD Analysis and Generating Trading Signals

Buy Signal

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

Buy Trading Signal

Sell Signal

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

Sell Trading Signal