VIDYA: An EMA Smoothed by Chande Momentum

Summary

The document presents a MetaTrader implementation of the Variable Index Dynamic Average (VIDYA). It starts with an EMA-style smoothing factor derived from the selected EMA period, then scales that factor by the absolute value of a Chande Momentum Oscillator calculated over recent price changes. The resulting average adapts its responsiveness to the strength and direction balance of recent movement.

The included code initializes the line from closing prices and recursively updates it using the adaptive factor. It exposes the CMO period, EMA period, and plotting shift as inputs. The document provides implementation details but no trading rules, performance tests, or evidence that the indicator predicts returns. Its output depends on the selected periods and price series; it is an indicator calculation rather than a complete strategy.

Key ideas

• VIDYA scales an EMA smoothing factor by the absolute value of a Chande Momentum Oscillator.
• The CMO component compares summed upward and downward price changes over a chosen period.
• The indicator recursively blends the current close with the prior VIDYA value.
• The code exposes the CMO period, EMA period, and display shift as configurable inputs.
• No empirical performance results or standalone entry and exit rules are provided.

Tags

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