Chande Dynamic Momentum Index Stock Indices Technical Analysis & Chande DMI Stock Indices Signals

Developed by Tushar Chande

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

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

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

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

Indices Technical Analysis & How to Generate Trading Signals

Buy Indices Signal

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

Buy Stock Indices Signal

Sell Stock Indices Signal

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

Sell Indices Signal