In other words, the DMI will use more time periods during quiet markets, and less during active markets. The more volatile the prices, the more sensitive the DMI is to price changes. The variability of the time periods used in the DMI is controlled by the recent volatility of prices. The DMI is identical to Welles Wilder’s Relative Strength Index except the number of periods is variable rather than fixed. The indicator is covered in detail in their book The New Technical Trader. The Dynamic Momentum Index (DMI) was developed by Tushar Chande and Stanley Kroll. This indicator plots Dynamic Momentum Index indicator. Article/Author: 'Stochastic RSI and Dynamic Momentum Index' Tushar Chande and Stanley Kroll - Stock&Commodities magazine May 1993.įile Includes: Indicator - Dynamic Momentum Index
