The Variable Index Dynamic Average (VIDYA) indicator for MetaTrader4 employs an exponential smoothing as its core of varying the speed or the trend separately.
The Variable Index Dynamic Average (VIDYA) deploys a pivotal smoothing constant and fluctuates the speed by employing a feature grounded on the relative volatility to ramp-up or shrink the constant. VIDYA also gauges volatility based on the standard deviation linked with a stretched historic form.
The default input parameters on the VIDYA dialogue box shows that its period has a value or “9,” while the historic pattern has a value of “30.” These values are adjustable and the trader is advised to play with them in order to get the most desirable settings.
Price is said to be bullish if price opens and closes above the blue line of the VIDYA indicator, while a bearish trend is said to be imminent when price opens and closes below the blue line of VIDYA indicator.
The Exponential smoothing carried out by the VIDYA indicator applies weight to the most recent period and spreads the remaining weight, thereby offering us the primary foundation for the exponential smoothing calculation.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (period, histper), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month