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Strategies & Market Trends : TA-Quotes Plus -- Ignore unavailable to you. Want to Upgrade?


To: TechTrader42 who wrote (2970)1/11/1998 5:23:00 PM
From: Richard Estes  Read Replies (1) | Respond to of 11149
 
Chande's Variable Index DYnamic Average or VIDYA is just a means of varying the respondness of a EMA using a Volatility indicator to seed the MA formulation with a value that changes in accordance with the change in volatility. So the moving average tracks closer when a stock is trending and backs off when it is ranging, yet stays close enough to prevent large losses.

I see little value in the bands for stocks, for futures, maybe. He uses CMO in the article but uses VHF for the book also. I prefer the VHF version, which Equis was kind enough to put back into MSWIN 6.5 after replacing it in 6.0. I consider VHF as more responsive to stocks.

You buy and sell like any MA.