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.
||The price used to calculate Dynamic Momentum Index.|
||The number of bars used to calculate the price standard deviation.|
||The number of bars used to calculate the moving average of standard deviation.|
||The number of bars used to calculate Dynamic Momentum Index under normal market conditions.|
||The number of bars used to calculate Dynamic Momentum Index in a very volatile market.|
||The number of bars used to calculate the Dynamic Momentum Index in very quiet market.|
||Dynamic Momentum Index.|
||The overbought level.|
||The oversold level.|
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.