Moving Average Variable Index Dynamic

vidya

Function Name: vidya

Tags: Moving Averages

Category: Trend

The Variable Index Dynamic Average (VIDYA) dynamically adjusts the alpha of an exponential moving average according to the ratio of the Standard Deviation of Close prices over a period of time to the Standard Deviation of Close prices over a longer period of time.

A moving average is generally used for trend identification. Attention is given to the direction in which the average is moving and to the relative position of prices and the moving average. Rising moving average values (direction) and prices above the moving average (position) would indicate an uptrend. Declining moving average values and prices below the moving average would indicate a downtrend.

 

Author:   Tushar Chande, Stanley Kroll

 

Parameters

period1

 

Default Value: 30  |  Minimum: 1  |  Maximum: 9999

 

Type: Numeric

period2

 

Default Value: 9  |  Minimum: 1  |  Maximum: 9999

 

Type: Numeric

shift

 

Default Value: 0  |  Minimum: 0  |  Maximum: 100

 

Type: Numeric