VIDYA1 Indicator by Chande and Kroll is a type of Moving Average that uses Standard Deviation and feedback in its calculation. The user may change the input (close), method (SMA), period (5) and alpha (.2). This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using VIDYA1 Indicator
VIDYA1 Indicator may be used as a type of Moving Average in conjunction with other indicators. No trading signals are calculated.
How To Access in MotiveWave
Go to the top menu, choose Study>Tushar Chande>VIDYA1 Indicator
or go to the top menu, choose Add Study, start typing in this study name until you see it appear in the list, click on the study name, click OK.
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//input = price, user defined, default is close
//method = moving average, user defined, default is SMA
//period = user defined, default is 5
//alpha = user defined, default is .2
//prev = previous, av = average
//std = standard deviation
//index = current bar number
stdDev = std(index, period, input); avStdDev = ma(method, index, period, stdDev); prevVidya = isNull(price, vidya[index-1]); ratio = stdDev/avStdDev; Plot: vidya = (alpha * ratio * price) + ((1-(alpha*ratio)) * prevVidya);