What is the Variable Index Dynamic Average (VIDYA)?
The Variable Index Dynamic Average (VIDYA) is a technical analysis indicator that combines elements of moving averages and the directional movement index (DMI) to provide a dynamic and adaptable view of market trends and momentum. It was developed by Tushar Chande, a well-known trader and author of several books on technical analysis and trading. The VIDYA is designed to be more responsive to changes in market conditions than traditional moving average indicators and can be customized to suit the individual needs and preferences of a trader.
How is it used by traders?
Traders typically use the VIDYA to identify potential buying and selling opportunities based on changes in market trends and momentum. The VIDYA is displayed as a line on the price chart and can be used in a variety of ways, including as a trend-following indicator, a momentum indicator, or a support and resistance indicator. Traders can use the VIDYA to confirm the strength of a trend or to identify potential trend reversals. The VIDYA can also be used to generate signals for entering and exiting trades, either by using crossovers between the VIDYA and the price or by using the VIDYA as a trend filter in conjunction with other indicators.
How can I add the VIDYA to a chart in MT4 or MT5?
To add the VIDYA to a chart in MetaTrader 4 (MT4) or MetaTrader 5 (MT5), follow these steps:
- Open the chart for the currency pair, stock, or other instrument that you want to analyze.
- Click on the ”Insert” menu at the top of the chart and select ”Indicators” from the drop-down list.
- In the ”Indicators” window, scroll down until you find the ”Variable Index Dynamic Average” and then double-click on it to add it to the chart.
- The VIDYA will appear on the chart as a line on the price chart.
- You can customize the appearance and settings of the VIDYA by right-clicking on it and selecting ”Properties” from the context menu. This will open the ”Variable Index Dynamic Average” properties window, where you can change the color, line style, and other settings for the indicator.
- Once you have customized the VIDYA to your liking, click ”OK” to apply the changes and close the properties window. The updated VIDYA will be displayed on the chart.
