Chande Dynamic Momentum Index Stock Analysis & Chande DMI Trading Signals

Developed by Tushar Chande

Chande DMI is similar to Welles Wilder's Relative Strength Index, however, there is one very important difference.

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

The number of stocks price periods used by this Momentum Index indicator decreases as the market volatility increases. This allows the technical indicator to be more responsive to stocks price changes.

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

Stock Analysis and How to Generate Trading Signals

Buy Trading Signal

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

Buy Trading Signal

Sell Trading Signal

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

Sell Trading Signal