Variable-Length Moving Average

Variable-Length Moving Average A moving average where the number of periods selected for smoothing is based on a volatility measurement of price. Typically, the standard deviation of price is used to measure price volatility.

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 .

See also: Points, Smoothing, Stock, Volatility, Position