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Dynamic Momentum (DMI)

The Dynamic Momentum Index, or DMI, very much resembles the Relative Strength Index. The distinction is that the DMI uses inconstant time periods, from 3 to 30, while RSI uses only the constant ones.

The inconstancy of the DMI time periods is restricted by the recent inconstancy of currency trading prices. The DMI is more sensitive to price changes when Forex prices are inconstant. When there are no fluctuations on Forex market, the DMI uses a greater number of time periods. A smaller number of time periods are being used in Forex trading markets that are more active. Thus, the DMI depends on fluctuations more in the Forex market and demonstrates changes more quickly than the RSI.

Dynamic Momentum

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