VIDYA - Variable Index Dynamic Average

Variable Index Dynamic Average (VIDYA) is a special moving average which was developed by Tushar Chande. The complete details about this technical indicator can be found in %u201CThe New Technical Trader by Tushar Chande and Stanley Kroll%u201D.

VIDYA is essentially a dynamic exponential moving average wherein the market volatility is also taken into consideration; this is achieved by using Chande Momentum Oscillator (CMO) as a measure of market volatility. The averaging period depends on the market volatility, and VIDYA moves faster as the short-term volatility increases, whereas it slows down when market volatility decreases.

This indicator needs two input parameters (a) Time period over which VIDYA needs to be averaged and (b) Time period over which volatility has to be estimated, basically this is the period over which CMO is calculated.

VIDYA is calculated in the following way:

First of all CMO is calculated using the following formula:

CMO(i) = (UpSum(i) - DnSum(i))/(UpSum(i) + DnSum(i))

where:

UpSum(i) - current sum of positive price increments for the given period;
DnSum(i) - current sum of negative price increments for the given period.

This CMO is then used to estimate VIDYA

VIDYA(i) = Price(i) * F * ABS(CMO(i)) + VIDYA(i-1) * (1 - F* ABS(CMO(i)))

where:

F = 2/(Period_EMA+1) - smoothing factor;
ABS(CMO(i)) - absolute current value CMO;
VIDYA(i-1) - previous value of VIDYA.

Technical Analysis

• Guppy Multiple Moving Average Oscillator
• Trading rules using the VIX Index
• Number of Stocks Above Upper Bollinger Bands
• Open Interest Data for Equity, Index and Futures Securities
• Multiple Time Frames Trading System - Price / Moving Average Crossover
• Auto Support and Resistance Indicator
• PIPS conversion formula in Forex trading
• Sortino Ratio of an Asset
• LSS Pivotal Buy and Sell Numbers - Trend Reaction
• CBOE Options Issues Traded
• More trading objects...

Fundamental Analysis

• Consumer Credit Historical Data
• Ownership data for US companies
• Industry Relative Strength
• Market cap, ROE, ROA and Forward PE for U.S. Stocks - Fundamental Data from Yahoo
• Number of dividend payments per day in the U.S. Stock Market
• Extensive Fundamental Data for U.S. Stocks
• Super Stock Screener Ranking System
• AAA Corporate Bond Yield Forecast
• Short Selling historical data
• Short Selling Data
• More trading objects...