Chandes Dynamic Momentum Index Analysis & Chande DMI Trading Signals

Developed by Tushar Chandes

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 price changes.

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

Stock Analysis and How to Generate Signals

Buy Trade 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 50 level mark.

Sell Trade Signal