Download: vidya.ela
File Includes:
Indicator - VIDYA (StdDev)
Function - StdDevVidya
Category: Indicator > Averages
Description:
This indicator plots volatility adjusted length exponential MA based on standard deviation of prices as a measure of volatility. It is dynamic, not static indicator: a variable-length moving average, which adapts to the volatility in question by exponentially smoothing data based on standard deviation.
Usage:
The most popular method of interpreting a moving average is to compare the relationship between a moving average of the security's price with the security's price itself (or between several moving averages).
Inputs:
Alpha - variable
Price - the data series to average
Lenght - the parameter tells how many bars to average
EasyLanguage Code:
INPUT: ALPHA(0.2),PRICE(CLOSE),LENGTH(20);
PLOT1(STDDEVVIDYA(ALPHA,PRICE,LENGTH),"PLOT1");