Intraday Momentum (IMI) is one of forex technical indicator used by many traders in forex technical analysis. Intraday Momentum (IMI) is a combination of Relative Strength Index and Candlestick Analysis gives the Intraday Momentum Index, that was developed by Tushar Chande.

The ‘IMI’ indicator is used in indicator formula construction to narrow the stock pre-screener results to include only those stocks that have an imi restricted to the parameters set for the imi indicator.

The calculation of the IMI is very similar to the RSI, except it uses the relationship between the intraday opening and closing prices to determine whether the day is “up” or “down.” If the close is above the open, it is an up day. If the close is below the open it is a down day. Therein lies its tie to candlestick charting. For those familiar with candlestick charting, the IMI separates the black and white candlesticks and performs a RSI calculation on the candlestick bodies.

Overbought/oversold: Index values above 70 indicate a potential overbought situation with lower prices ahead. Values below 30 indicate a potential oversold situation with higher prices ahead. As with all overbought/oversold indicators, you should first quantify the trendiness of the market before acting on the signals. Indicators like the VHF, CMO, and r-squared can be used to gauge the trendiness of the market.

The Intraday Momentum Index (IMI) is the same formula as the Relative Strength Index (RSI), except intraday differences are used as input. In otherwords, while the RSI uses the day-to-day change as input, the IMI uses the difference between the high and low values for the day.