Chande Dynamic Momentum Index Oil Technical Analysis and Chande DMI Trading Signals

Developed by Tushar Chande

Chande's DMI trading indicator is similar to Welles Wilder's RSI technical indicator , however, there is one very important difference.

Relative Strength Index uses a fixed number of crude oil price periods while the Chande Momentum Dynamic Index uses a variable amount of crude oil price periods as market volatility changes.

The number of crude oil 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 crude oil price changes.

The Chande DMI is more accurate than the RSI, has less whipsaws & is less Choppy

Crude Oil Technical Analysis & How to Generate Trading Signals

Buy Crude Trading Signal

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

Buy Trading Signal

Sell Crude Trading Signal

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

Sell Trading Signal