The technical indicator Moving Average with a Dynamic Averaging Period (Variable Index Dynamic Average, VIDyA) was developed by Tushar Chande and is an original method for calculating an exponential moving average (EMA) with a dynamically changing averaging period. The averaging period depends on the market volatility, the Chande Momentum Oscillator (CMO) was chosen as a measure of volatility. This oscillator measures the ratio between the sum of positive increments and the sum of negative increments for a certain period (CMO period). The CMO value is used as a coefficient to the smoothing factor EMA. The VIDYA indicator has two main settings: the period of the CMO oscillator and the smoothing period of the exponential moving average (EMA period).

• Period CMO – period of the oscillator
• Period EMA – the period of the moving average
• Indicator’s shift – the indicator’s shift in bars forward/backward
• Additional digits – additional accuracy of the indicator values