TSO Variable Index Dynamic Average VIDYA

Variable Index Dynamic Average (VIDYA) is an original method of calculating the Exponential Moving Average (EMA) with the dynamically changing period of averaging, developed by Tushar Chande. The length of period in VIDYA depends on market volatility as indicated by the Chande Momentum Oscillator (CMO).

Typical Signals

VIDYA generates buy and sell signals when the price crosses over and under the bands:

1. When the price crosses over the upper band of VIDYA, this can be interpreted as a signal to buy.
2. When the price crosses under the lower band of VIDYA, this can be interpreted as a signal to sell.

Inputs

• VIDYA Period: EMA averaging period.
• Vidya Smooth: Smoothing factor.
• CMO Period: The number of candlesticks used for the calculation of CMO.
• Last Bar Included: Include the value of the bar currently being drawn in VIDYA calculations.

For EA Developers

1. VIDYA value: Buffer = 0
2. CMO value: Buffer = 1