# Dynamic Momentum Index (DMIndex)

#### Description <a href="#description_33" id="description_33"></a>

The Dynamic Momentum Index, which was developed by Tushar Chande, is a specific variant of the Relative Strength Index. Chande changed the Dynamic Momentum Index in such a way that, based on various factors, the period settings automatically adjust themselves, which he achieved by coupling it to the RSI in order for a volatility component to be present. The definition of this volatility component is based on a 5-day standard deviation of the closing prices. This, in turn, is then compared to the 10-day average of a 5-day standard deviation.

#### Interpretation <a href="#interpretation_17" id="interpretation_17"></a>

If the Dynamic Momentum Index is showing the overbought area, one speculates on falling prices; if the Dynamic Momentum Index is showing the oversold area, the speculation is on rising prices. Trading in this way makes sense if other indicators such as absCMO are showing a trendless phase, so the point is to trade against the trend. During a strong trend phase, it is recommended to trade in the trend direction; in the phase of an upward trend, one should wait for an oversold situation until a buy signal occurs.

#### Further and more concise information <a href="#further-and-more-concise-information" id="further-and-more-concise-information"></a>

VTAD: <http://vtadwiki.vtad.de/index.php/Dynamic_Momentum_Index>

#### Usage <a href="#usage_34" id="usage_34"></a>

```csharp
DMIndex(int smooth)
DMIndex(IDataSeries inSeries, int smooth)
DMIndex(int smooth)[int barsAgo]
DMIndex(IDataSeries inSeries, int smooth)[int barsAgo]
```

#### Return value <a href="#return-value_34" id="return-value_34"></a>

**double**

When using this method with an index (e.g. **DMIndex**(3)\[**int** barsAgo] ), the value of the indicator will be issued for the referenced bar.

#### Parameters <a href="#parameters_31" id="parameters_31"></a>

inSeries Input data series for the indicator

smooth Smoothing settings

#### Visualization <a href="#visualization_35" id="visualization_35"></a>

![Dynamic Momentum Index (DMIndex)](https://agenatrader.github.io/AgenaIndicator-documentation/media/DMIindex.jpg)

#### Example <a href="#example_34" id="example_34"></a>

```csharp
//Output of the value for the DMIndex Indicator with a smoothing factor of 3
Print("The current value for the DMIndex is: " + DMIndex(3)[0]);
```