Tushar Chande's DMI trading indicator
Tushar Chande's DMI trading indicator for the MetaTrader 5 trading terminal is a dynamic momentum indicator designed to identify overbought and oversold zones. It is similar to RSI indicatorbut differs in that it uses not a fixed number of time periods, but different periods as the volatility changes.
How to use Tushar Chande's DMI indicator
Tushar Chande's DMI is interpreted on the same principle as the RSI, in which values below 30 are defined as oversoldand above 70, it's like overbought. The number of time periods used in the dynamic pulse decreases as the volatility of the selected asset increases. This makes the indicator more responsive to price changes than the RSI.
В Tushar Chande's DMI trading indicator for MT5 implemented additional smoothing by using in the calculations not the original RSI, but RSX, to make the indicator more readable.
Download Tushar Chande's DMI trading indicator