Vidya

Variable Index Dynamic Average (VIDYA) is a VertexFX Indicator in the form of moving average that uses smoothing based upon the volatility. The smoothing factor employed is 2 / (VIDYA_PERIOD + 1).

VIDYA is used in addition to other indicators like Bollinger Bands to determine trading ranges especially in trend following systems. A percentage based band is added above and below the VIDYA indicator to determine trading ranges. When the price breaks out above the upper band an uptrend may be considered. Likewise, when a price breaks below the lower band a downtrend may be considered.

VIDYA should be used in conjunction with other trending indicators and oscillators like MACD to determine strong trends.

User Inputs:
1) VIDYA_PERIOD – The shorter period standard deviation.
2) HIST_PERIOD – The longer (smoother) period standard deviation.

Usage

• Download the attachment.
• Copy it to your company VertexFX  Local VTL Files folder i.e. C:Program FilesCompany Namevtl10Local VTL Scripts
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.