Dynamic Momentum Index (DMI)
The Dynamic Momentum Index is a variable term RSI. The RSI term varies from 3 to 30. The variable time period makes the RSI more responsive to short-term moves. The more volatile the price is, the shorter the time period is. It is interpreted in the same way as the RSI, but provides signals earlier.
See also RSI.
The Dynamic Momentum Index was developed by Tushar S. Chande and Stanley Kroll and is described in their 1994 book The New Technical Trader.
Formula:
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