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VIDYA (Volatility Index Dynamic Average) developed by Chande, is a variable-length moving average, which adapts to the volatility in question by exponentially smoothing data based on standard deviation .The VIDYA uses a volatility index for weighting the data points.
In this moving average the adjustment is done primarily to improve its responsiveness in times of heightened volatility. The indicator is more responsive to market price movements than a conventional simple or exponential moving average, and can be used for position trading.
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