# Dynamic Momentum Index Dynamic Momentum Index is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. Chande and Kroll's variable-length RSI: the 14-period base is divided by a volatility index (5-bar standard deviation over its 10-bar average) and clamped between 5 and 30 bars, so readings turn faster in volatile phases and steadier in quiet ones. Plots the adaptive oscillator with 70/30 levels, a midline gradient, an optional effective-length stepline and a dashboard. - Indicator in the LuxAlgo Library, by LuxAlgo, published Apr 24, 2026. - Access: free. - Concepts: [Dynamic Momentum Index](https://www.luxalgo.com/library/concept/dynamic-momentum-index/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=tpxtu1tamoqom2mqa8ntwuan - Page: https://www.luxalgo.com/library/indicator/dynamic-momentum-index/ **Dynamic Momentum Index** is an RSI whose lookback is re-derived on every bar. The Library's first build of the [Dynamic Momentum Index](https://www.luxalgo.com/library/concept/dynamic-momentum-index/) divides the base period by a volatility index and reads a standard Wilder RSI at that adaptive length, exactly as Chande and Kroll specified: above-normal volatility contracts the effective period toward the minimum, quiet markets stretch it toward the maximum. A dashboard reports the current effective length and volatility index, and an optional stepline plots the length so the adaptation stays visible. ## How to Trade the Dynamic Momentum Index? - **Overbought / oversold**: readings beyond 70/30 carry the usual RSI conventions, with alerts on entering and exiting each zone; extremes arrive earlier because the period contracts in fast markets. - **Centerline regime**: the 50 line splits bullish from bearish momentum. The plot is colored and gradient-filled by side, and both crossings carry alerts. - **Effective length as context**: a short reading means signals come from a twitchy, fast oscillator; a long one means the market is quiet and readings are steadier. ## Dynamic Momentum Index Settings - **Source** (default close): series for both the volatility index and the RSI. - **Base RSI Length** (default 14): the period being adapted, divided by the volatility index each bar. - **Volatility Stdev Length** (default 5) and **Volatility Average Length** (default 10): the deviation window and its comparison average. - **Minimum RSI Length** (default 5) and **Maximum RSI Length** (default 30): the clamps on the dynamic lookback. - **Overbought Level** (default 70) and **Oversold Level** (default 30): the zone thresholds. - **Dashboard and style toggles**: panel location and size, colors, and the effective-length stepline (disabled by default). ## Frequently Asked Questions ### Is this Wilder's DMI from the ADX system? No. The shared acronym is a trap. Wilder's directional movement index measures trend direction and strength; this is Chande and Kroll's adaptive-length momentum oscillator, read like an RSI, not like ADX. ### How does it differ from a standard RSI? A fixed 14-period [Relative Strength Index](https://www.luxalgo.com/library/indicator/relative-strength-index/) treats every regime identically, lagging in fast markets and overreacting in quiet ones. The DMI re-derives its period from current volatility, changing when extremes and centerline crosses arrive rather than what they mean. ### Should I widen the 70/30 levels? Because the lookback compresses in volatile phases, the DMI visits its extremes more often than a fixed RSI, and some users widen the thresholds to 80/20 to compensate. Start from the defaults and adjust to the market's volatility profile. ## Related indicators - [Internal Candle Strength](https://www.luxalgo.com/library/indicator/internal-candle-strength/) (Balance of Power): markdown at https://www.luxalgo.com/library/indicator/internal-candle-strength.md - [Pretty Good Oscillator](https://www.luxalgo.com/library/indicator/pretty-good-oscillator/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/pretty-good-oscillator.md - [Gator Oscillator](https://www.luxalgo.com/library/indicator/gator-oscillator/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/gator-oscillator.md - [Wave Trend Oscillator](https://www.luxalgo.com/library/indicator/wave-trend-oscillator/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/wave-trend-oscillator.md - [Traders Dynamic Index](https://www.luxalgo.com/library/indicator/traders-dynamic-index/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/traders-dynamic-index.md - [Center of Gravity](https://www.luxalgo.com/library/indicator/center-of-gravity/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/center-of-gravity.md - [QQE Weighted Oscillator](https://www.luxalgo.com/library/indicator/qqe-weighted-oscillator/) (QQE): markdown at https://www.luxalgo.com/library/indicator/qqe-weighted-oscillator.md - [5/35 Oscillator](https://www.luxalgo.com/library/indicator/5-35-oscillator/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/5-35-oscillator.md --- Source: https://www.luxalgo.com/library/indicator/dynamic-momentum-index/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/