VIDYA (Variable Index Dynamic Average) Indicator Explained

Tushar Chande's VIDYA (Variable Index Dynamic Average) is an EMA whose speed is controlled by momentum: when the absolute CMO is high the average races with price, and when momentum dies it nearly stops moving.

How It Works

• The absolute Chande Momentum Oscillator scales the EMA's smoothing constant bar by bar.
• Strong one-directional movement → fast average; balanced churn → the line flattens and ignores it.
• The flattening behavior makes VIDYA a built-in range detector.

How to Trade It

Use price-vs-VIDYA crosses for trend entries that self-mute in ranges, or condition on VIDYA's slope being nonzero as a regime gate. A VIDYA that has gone horizontal is the market telling you momentum has left.

Building It in Setup.Cash

Add VIDYA (Variable Index Dynamic Average) in the strategy builder — the length input controls its sensitivity — and use its value in any entry, exit, or filter condition. You can also combine it with other tools in the Indicators Lab or via the AI indicator generator. Compare with KAMA, which adapts on efficiency instead of momentum. For the full category overview, see the advanced trend library guide.

Trend tools reward patience: pick one, pair it with a volatility or regime filter, and backtest before trading it live.