Variable Moving Average with a Volatility-Dependent Period

Summary

The VMA indicator changes its moving-average period in response to volatility. In the description, higher volatility lengthens the period, while lower volatility shortens it. This makes the averaging window adaptive rather than fixed, though the document does not specify the volatility measure or the precise mapping from volatility to period.

Three inputs are listed: a calculation period, a smoothing period, and the price series used in the calculation. The text gives a brief functional description but no formula, chart, parameter guidance, or comparison with fixed-period averages. It therefore explains the indicator’s intended behavior without evidence that it improves signal quality or trading performance. Any use in a strategy would require clarifying the implementation and evaluating it against suitable benchmarks.

Key ideas

• The indicator adjusts its moving-average period according to volatility.
• Higher volatility produces a longer averaging period, and lower volatility produces a shorter one.
• Its listed inputs are calculation period, smoothing period, and applied price.
• The description does not provide the volatility formula or evidence of trading performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.