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Varible Moving Average (VMA) by Chande?


Riker66

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Hello ,  couldn´t find the VMA indicator by Chande.
I don´t mean the ViDYA indicator which is often mistaken for the VMA.
Someone programmed the VMA for tradingview and Tos which isn´t original in their systems.
Is there a way to implement it here?

Thanks

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The VMA I implemented is the one where EMA is modified by the volatility index. It is claimed to be from Chande too. And yes it is "VIDYA".

http://etfhq.com/blog/2011/02/22/variable-moving-average-vma-volatility-index-dynamic-average-vidya/

The VI that is used in our calculations is the Efficiency Ratio.  You may be looking at VMA that uses a different VI. What would it be?

What is the formula of the one you want?

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A VMA is an EMA that is able to regulate its smoothing percentage based on market inconstancy automatically. Its sensitivity grows by providing more weight to the ongoing data as it generates a better signal indicator for short and long-term markets.

The majority of ways for measuring Moving Averages cannot compensate for sideways moving prices versus trending markets and often generate a lot of false signals. Longer-term moving averages are slow to react to reversals in trend when prices move up and down over a long period of time. A Variable Moving Average regulates its sensitivity and lets it function better in any market conditions by using automatic regulation of the smoothing constant.

The Variable Moving Average is also known as the VIDYA Indicator. But this version is a modified concept of the VIDYA.

The Variable Moving Average was developed by Tushar S. Chande and first presented in his March, 1992 article in Technical Analysis of Stocks & Commodities magazine, in which a standard deviation was used as the Volatility Index. In his October, 1995 article in the same magazine, Chande modified the VIDYA to use his own Chande Momentum Oscillator (CMO) as the Volatility Index, the VMA code above (posted on thinkscript) is the result of this modification.

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