Dynamic Momentum Index

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Dictionary Says

Definition of 'Dynamic Momentum Index'

An indicator used in technical analysis that determines overbought and oversold conditions of a particular asset. This indicator is very similar to the relative strength index (RSI). The main difference between the two is that the RSI uses a fixed number of time periods (usually 14), while the dynamic momentum index uses different time periods as volatility changes.
Investopedia Says

Investopedia explains 'Dynamic Momentum Index'

This indicator is interpreted in the same manner as the RSI where readings below 30 are deemed to be oversold and levels over 70 are deemed to be overbought. The number of time periods used in the dynamic momentum index decreases as volatility in the underlying asset increases, making this indicator more responsive to changing prices than the RSI.

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'Dynamic Momentum Index'

  • The Most Reliable Indicator You've Never Heard Of

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    ... market as long as possible. The constant N determines how closely the Dynamic
    tracks the index or stock. If one is emulating a 20 ...

  • Spice Up Your Portfolio With Quantitative ETFs

    http://stocks.investopedia.com/stock-analysis/2010/Spice-Up-Your-Portfolio-With-Quantitative-ETFs-MNA-PDP-PWC0413.aspx
    ... Dorsey Wright Technical Leaders Index, investing in ... highs and definitely provide
    momentum for the ETF ... Dynamic ETFs The Intellidex Methodology assesses corporate ...

  • "Do The Right Thing" For Trade Breakouts

    http://www.investopedia.com/articles/forex/08/CCI.asp
    ... The same dynamic occurs in trading ... extremely good and sensitive measure of momentum
    and helps ... Timing Trades With The Commodity Channel Index.) Without resorting ...

  • Four ETFs On Fire Right Now

    http://stocks.investopedia.com/stock-analysis/2009/Four-ETFs-On-Fire-Right-Now-ITB-SMH-KOL-PYZ0806.aspx
    ... weeks has been the PowerShares Dynamic Basic Materials ... ETFs will be able maintain
    their momentum or if ... differences between ETFs and other index-tracking funds ...

  • Forecasting Market Direction With Put/Call Ratios

    http://www.investopedia.com/articles/optioninvestor/02/052102.asp
    ... and perhaps a price-based (ie, momentum) indicator ... This is because of the index put
    option hedging ... the critical threshold levels should be dynamic, chosen from ...

  • Getting Positive Results With Market-Neutral Funds

    http://www.investopedia.com/articles/mutualfunds/09/market-neutral-funds.asp
    ... technical factors such as value, momentum, liquidity, sentiment ... 2% to 3%) than either
    index funds or ... market-neutral funds have very dynamic trading strategies ...

  • Weekend Analysis: A Path To Forex Profits

    http://www.investopedia.com/articles/forex/10/weekend-analysis.asp
    ... be made when the markets are not in dynamic flux and ... gold so that they can speculate
    on the momentum and then ... So let us then turn to the dollar index chart to ...

  • Make The Currency Cross Your Boss

    http://www.investopedia.com/articles/forex/05/CurrencyCross.asp
    ... dollar is one good recent example of such a dynamic. ... As this chart shows, even when
    an index like the DJIA is ... Figure 5: The NZD/JPY pair gained momentum in the ...

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