DynamicMomentumIndex

Description

The Dynamic Momentum Index study is quite similar to Welles Wilder's Relative Strength Index. The difference is that DYMI uses variable time periods (from 3 to 30), whereas RSI uses fixed ones.

The variability of the time periods used in the DYMI is controlled by recent volatility of prices. The more volatile prices suggest the more sensitive DYMI towards price changes. During quiet market conditions, DYMI uses more time periods than when more active markets occur. As a result, the DYMI is more sensitive to fluctuations in the market and displays changes more rapidly than the RSI can.

Input Parameters

Parameter Description
price The price used to calculate Dynamic Momentum Index.
stdev length The number of bars used to calculate the price standard deviation.
avg of stdev length The number of bars used to calculate the moving average of standard deviation.
dymi length The number of bars used to calculate Dynamic Momentum Index under normal market conditions.
dymi length lower limit The number of bars used to calculate Dynamic Momentum Index in a very volatile market.
dymi length upper limit The number of bars used to calculate the Dynamic Momentum Index in very quiet market.

Plots

Plot Description
DYMI Dynamic Momentum Index.
OverBought The overbought level.
OverSold The oversold level.

Example*

*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.

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