Re: Vidya

["Richard Estes" <rtestes@xxxxxxxxxxxxxx>]

It was at the site.




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1998 January Tasc - Breaking out of Price Channels - VIDYA Article



Breaking out of Price Channels, by Gerald Marisch,"Technical Analysis of
Stocks & Commodities", January 1998, page 93.

"Here's a technique based upon Tushar Chande's variable-length moving
average.   The indicator is more responsive to market price movements than a
conventional simple or exponential moving average, and can be used for
position trading."

The following formula will match the authors slight modification to the
variable moving average:

VIDYA 21,5 Indicator

Length:=Input("Length",1,200,21);

Smooth:=Input("Smoothing",1,200,5);

AbsCMO:=(Abs(CMO(C,Length)))/100;

SC:=2/(Smooth+1);

VIDYA:=If(Cum(1)<=(Length+1),C,(SC*AbsCMO*CLOSE)+(1-(SC*AbsCMO))*PREV);

VIDYA



The following Expert highlights will show you when the price has undergone
trend changes as discussed in the article.  Enter each section as a separate
highlight in an Expert Advisor.  To do this, create a new Expert and select
Highlights from the tab dialog.  Then select New and name it Bull.  Paste
the Bull trend formula into the condition box within the editor and set the
color to green.   Do this for the Bear and the Pause conditions as well,
selecting the matching colors,  Attach this Expert to your chart and if the
conditions are met, the price bars will be displayed in the proper colors.

Green Bars (Bull trend):

Length:=21;

Smooth:=5;

AbsCMO:=(Abs(CMO(C,Length)))/100;

SC:=2/(Smooth+1);

VIDYA:=If(Cum(1)<=(Length+1),C,(SC*AbsCMO*CLOSE)+(1-(SC*AbsCMO))*PREV);

C>(Vidya*1.01)



Red Bars (Bear trend):

Length:=21;

Smooth:=5;

AbsCMO:=(Abs(CMO(C,Length)))/100;

SC:=2/(Smooth+1);

VIDYA:=If(Cum(1)<=(Length+1),C,(SC*AbsCMO*CLOSE)+(1-(SC*AbsCMO))*PREV);

C<(VIDYA*.99)



Yellow Bars( Pause or pending reversal of the trend):

Length:=21;

Smooth:=5;

AbsCMO:=(Abs(CMO(C,Length)))/100;

SC:=2/(Smooth+1);

VIDYA:=If(Cum(1)<=(Length+1),C,(SC*AbsCMO*CLOSE)+(1-(SC*AbsCMO))*PREV);

C>(VIDYA*.99) AND C<(VIDYA*1.01)


Richard Estes