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----- Original Message -----
From: "Christian Baude" <BAUDECB@xxxxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Cc: "Ian Burgoyne" <iburgy@xxxxxxxxxxx>
Sent: Sunday, January 23, 2000 12:23 AM
Subject: Re: The New Technical Trader (VIDYA)
> As I understand it, VIDYA uses a Volitility measure (CMO) to modify
> the Smoothing Constant (SC) used in the Exponential Moving Average
> (EMA). (Chande used several other measures beside CMO, i.e., r
> squared, etc.)
That's right. And since the CMO can NEVER be greater than 1, all that
happens is you get a less responsive EMA. Chande's CMO-based VIDYA, AKA MS's
VMA is another example of the bad math the passes for gospel in the TA
world.
cheers,
Rick
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