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Ironic this was mentioned because I just sent Equis Support an Email about
this recently. I don't think the built-in MS 6 VMA is useful for any period
greater than 1. Just eyeballing a comparison between it and a SMA or EMA
with a corresponding period will show it to be less sensitive. Of course,
that shouldn't be the case. The problem seems to be in MS using a scaling
multiplier of .78.
Also I noticed that p.69 of Chande's book shows him using "yesterdays
VIDYA" at the end of his formula. MS 6 is in agreement here too, using
"yesterdays VMA." But this appears to be inconsistent with Chande's other
formulas indexing VIDYA with standard deviation or r2 where "yesterdays
close" is used. Can anyone explain why?
Rick Mortellra
Tokyo, Japan
rmjapan@xxxxxxxxxxxxx
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From: Richard Estes <dick@xxxxxxxxxxxxxxxxx>
To: etlon@xxxxxxxxxxxxxxxxxxxxxxxx; metastock-list@xxxxxxxxxxxxx
Subject: Re: Variable Index Dynamic Average (VIDYA)
Date: Monday, April 28, 1997 11:26 AM
That is what the variable MA is suppose to be. Won't get into a long story.
IMO: It is only useable using periods from 3-16. Suggest you work with it,
I suggest 8-13 for most usage. I considered the old pre 6.0 varMA to be the
best for nearly all usage. I hope we will see it in future upgrades.
Richard Estes
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