Chande Dynamic Momentum Index Stocks Technical Analysis and Chande DMI Stocks Signals
Developed by Tushar Chande
Chande DMI is similar to Welles Wilder’s RSI, however, there is one very important difference.
Relative Strength Index 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 decreases as market volatility increases. This allows the indicator to be more responsive to stocks price changes.
The Chande DMI is more accurate than the RSI, has less whipsaws and is less Choppy
Stock Technical Analysis and How to Generate Signals
Buy Stocks Signal
A buy Signal is generated when the DMI crosses above 50 level mark.
Buy Stock Signal
Sell Stock Signal
A sell Signal is generated when the DMI crosses below 50 level mark.
Sell Stocks Signal
