Open-domain multi-turn conversations normally face the challenges of how to enrich and expand the content of the conversation. Recently, many approaches based on external knowledge are proposed to generate rich semantic and information conversation. Two types of knowledge have been studied for knowledge-aware open-domain dialogue generation: structured triples from knowledge graphs and unstructured texts from documents. To take both advantages of abundant unstructured latent knowledge in the documents and the information expansion capabilities of the structured knowledge graph, this paper presents a new dialogue generation model, Dynamic Multi-form Knowledge Fusion based Open-domain Chatt-ing Machine (DMKCM).In particular, DMKCM applies an indexed text (a virtual Knowledge Base) to locate relevant documents as 1st hop and then expands the content of the dialogue and its 1st hop using a commonsense knowledge graph to get apposite triples as 2nd hop. To merge these two forms of knowledge into the dialogue effectively, we design a dynamic virtual knowledge selector and a controller that help to enrich and expand knowledge space. Moreover, DMKCM adopts a novel dynamic knowledge memory module that effectively uses historical reasoning knowledge to generate better responses. Experimental results indicate the effectiveness of our method in terms of dialogue coherence and informativeness.