VIDYA (Volatility Index Dynamic Average) developed by Chande, is a variable-length moving average, which adapts to the volatility in question by exponentially smoothing data based on standard deviation .The VIDYA uses a volatility index for weighting the data points.

 

Usage:

 

In this moving average the adjustment is done primarily to improve its responsiveness in times of heightened volatility. The indicator is more responsive to market price movements than a conventional simple or exponential moving average, and can be used for position trading.

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