Compact mode
Directional Movement Index (DMI) vs Average Directional Index (ADX) vs Chande Momentum Oscillator (CMO)
Table of content
General Information Comparison
Indicator Type 📊
The category or classification of the trading indicator based on its primary function and analysis method.Directional Movement Index (DMI)- TrendDirectional Movement Index (DMI) is a Trend type indicator. Indicators that help identify and confirm market trends
Average Directional Index (ADX)- TrendAverage Directional Index (ADX) is a Trend type indicator. Indicators that help identify and confirm market trends
Chande Momentum Oscillator (CMO)Asset Class 💰
Specifies the financial instruments for which the indicator is most commonly usedFor all*Known for 💭
The unique selling point or distinguishing feature of the trading indicatorDirectional Movement Index (DMI)- Strength Of Price MovementDirectional Movement Index (DMI) is known for Strength Of Price Movement.
Average Directional Index (ADX)- Trend Strength Without DirectionAverage Directional Index (ADX) is known for Trend Strength Without Direction.
Chande Momentum Oscillator (CMO)- Momentum MeasurementChande Momentum Oscillator (CMO) is known for Momentum Measurement.
Made In 🌍
The country or origin of the trading indicatorDirectional Movement Index (DMI)- United StatesDirectional Movement Index (DMI) was developed in United States. Indicators developed in the USA, reflecting American trading principles
Average Directional Index (ADX)- 1978Average Directional Index (ADX) was developed in 1978. Trading indicators specifically developed in 1978
Chande Momentum Oscillator (CMO)
Characteristics Comparison
Lagging or Leading 🏁
Indicates whether the trading indicator is a lagging or leading type, reflecting its predictive nature.Directional Movement Index (DMI)- LaggingDirectional Movement Index (DMI) is a Lagging indicator. Indicators that confirm trends after they have started
Average Directional Index (ADX)- LaggingAverage Directional Index (ADX) is a Lagging indicator. Indicators that confirm trends after they have started
Chande Momentum Oscillator (CMO)Complexity Level 🧑
Indicates the level of expertise required to effectively use the indicatorFor all*Popularity 🏆
Indicates how widely used and recognized the indicator is in the trading communityDirectional Movement Index (DMI)- HighThe popularity of Directional Movement Index (DMI) among traders is considered High. Widely used and trusted indicators in the trading community
Average Directional Index (ADX)- MediumThe popularity of Average Directional Index (ADX) among traders is considered Medium. Indicators with balanced adoption and potential effectiveness
Chande Momentum Oscillator (CMO)- LowThe popularity of Chande Momentum Oscillator (CMO) among traders is considered Low. Indicators with lower adoption but potential unique insights
Facts Comparison
Interesting Fact 💡
An intriguing or lesser-known fact about the trading indicatorDirectional Movement Index (DMI)- Developed by J. Welles Wilder Jr. who also created RSI
Average Directional Index (ADX)- Part of the Directional Movement System
Chande Momentum Oscillator (CMO)- Developed by Tushar Chande in 1994
Sarcastic Fact 😉
A humorous or ironic observation about the trading indicatorDirectional Movement Index (DMI)- Sometimes called the 'trend trader's best friend' despite its complexity
Average Directional Index (ADX)- It's like a gym membership - tells you how strong the trend is but not where it's going
Chande Momentum Oscillator (CMO)- It's the yoga of momentum indicators - flexible but disciplined
Application Comparison
Timeframe 🕑
The time intervals or periods for which the trading indicator is most effective or commonly used.For all*- DailyIndicators optimized for daily chart analysis, suitable for swing and position traders.
Average Directional Index (ADX)- WeeklyAverage Directional Index (ADX) is most effective for Weekly timeframes. Indicators optimized for weekly chart analysis, balancing short-term noise and long-term trends.
Chande Momentum Oscillator (CMO)- WeeklyChande Momentum Oscillator (CMO) is most effective for Weekly timeframes. Indicators optimized for weekly chart analysis, balancing short-term noise and long-term trends.
Technical Details Comparison
Calculation Method 🧮
The mathematical or analytical approach used to compute the trading indicator's values.Directional Movement Index (DMI)Average Directional Index (ADX)Chande Momentum Oscillator (CMO)Signal Generation 📊
Describes the methods by which the indicator produces trading signalsFor all*- ThresholdsIndicators that generate signals when certain predefined levels or conditions are met
Directional Movement Index (DMI)- CrossoversDirectional Movement Index (DMI) generates trading signals through Crossovers. Indicators that generate signals when one line crosses another, indicating trend changes
Chande Momentum Oscillator (CMO)- DivergencesChande Momentum Oscillator (CMO) generates trading signals through Divergences. Indicators that show discrepancies between price and indicator movements, suggesting potential reversals
Customization Options 🔧
Lists the parameters that can be adjusted to fine-tune the indicatorFor all*Directional Movement Index (DMI)Chande Momentum Oscillator (CMO)
Usage Comparison
For whom 👥
The target audience or user group for the trading indicatorDirectional Movement Index (DMI)Average Directional Index (ADX)Chande Momentum Oscillator (CMO)Purpose 📈
The primary purpose or application of the trading indicatorDirectional Movement Index (DMI)Average Directional Index (ADX)Chande Momentum Oscillator (CMO)
Evaluation Comparison
Pros 👍
Advantages of using the trading indicatorDirectional Movement Index (DMI)- Combines Multiple IndicatorsIndicators that integrate multiple data points for comprehensive analysis
- Measures Both Trend Direction And Strength
Average Directional Index (ADX)- Effective For Identifying Strong Trends
- Non-DirectionalProvides market insights without predicting price direction, useful for various strategies
Chande Momentum Oscillator (CMO)- Less Prone To WhipsawsMinimizes false signals in volatile markets, improving trade accuracy
- Effective In Trending Markets
Cons 👎
Disadvantages or limitations of the trading indicatorDirectional Movement Index (DMI)- Can Produce False Signals In Choppy MarketsIndicators that minimize false signals in erratic or indecisive market conditions Click to see all.
- Requires Understanding Of Multiple ComponentsIndicates that some indicators involve several elements that need to be understood for effective use. Click to see all.
Average Directional Index (ADX)- Doesn't Indicate Trend DirectionIndicators that don't reveal trend direction, potentially missing important market context. Click to see all.
- Lagging IndicatorIndicators that follow price action, potentially delaying trading signals in fast-moving markets. Click to see all.
Chande Momentum Oscillator (CMO)
Performance Metrics Comparison
Reliability Score 💯
A score indicating the overall reliability of the trading indicatorDirectional Movement Index (DMI)Average Directional Index (ADX)Chande Momentum Oscillator (CMO)Ease of Use Score 💻
A score representing how user-friendly and intuitive the trading indicator isFor all*Versatility Score 🔀
A score indicating the adaptability of the trading indicator across different markets and timeframesDirectional Movement Index (DMI)Average Directional Index (ADX)Chande Momentum Oscillator (CMO)Customization Score 🔧
A score representing the degree of customization available for the trading indicatorDirectional Movement Index (DMI)- 7.5The customization score for Directional Movement Index (DMI) is 7.5 out of 10.
Average Directional Index (ADX)- 6.5The customization score for Average Directional Index (ADX) is 6.5 out of 10.
Chande Momentum Oscillator (CMO)- 7The customization score for Chande Momentum Oscillator (CMO) is 7 out of 10.
Score ⭐
The overall score of the trading indicator based on various performance metricsDirectional Movement Index (DMI)Average Directional Index (ADX)Chande Momentum Oscillator (CMO)
Alternatives to Directional Movement Index (DMI)
Average True Range (ATR)
Known for Volatility Without Direction
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is easier to use than Average Directional Index (ADX)
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is rated higher overall than Average Directional Index (ADX)
Elder Triple Screen
Known for Trend-Momentum Alignment
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is more versatile than Average Directional Index (ADX)
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is more customizable than Average Directional Index (ADX)
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is rated higher overall than Average Directional Index (ADX)
Guppy Multiple Moving Average
Known for Visualizing Short-Term And Long-Term Trends
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is more versatile than Average Directional Index (ADX)
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is more customizable than Average Directional Index (ADX)
Keltner Channels
Known for Combining Moving Averages With Volatility
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is easier to use than Average Directional Index (ADX)
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is more customizable than Average Directional Index (ADX)
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is rated higher overall than Average Directional Index (ADX)
Exponential Moving Average (EMA)
Known for Smooth Price Movements
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is easier to use than Average Directional Index (ADX)
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is more customizable than Average Directional Index (ADX)
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is rated higher overall than Average Directional Index (ADX)
Money Flow Index (MFI)
Known for Volume And Price Movements
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is more customizable than Average Directional Index (ADX)
Elder Impulse System
Known for Combining Trend And Momentum
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is easier to use than Average Directional Index (ADX)
Moving Average Envelope
Known for Price Range Visualization
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is easier to use than Average Directional Index (ADX)
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is more customizable than Average Directional Index (ADX)
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is rated higher overall than Average Directional Index (ADX)
Aroon Up And Down
Known for Identifying Potential Trend Changes
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is easier to use than Average Directional Index (ADX)