Chandes Dynamic Momentum Index Analysis & 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 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 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 whipsaws & is less Choppy

Crude Oil Analysis & How to Generate Trade Signals

Buy Signal

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

Buy Signal

Sell Signal

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

Sell Trade Signal