VIDYA (Volatility Index DynamicAverage), , is a moving average derived from linear regression R2. A MovingAverage is most often used to average values for a smoother representation ofthe underlying price or indicator. VIDYA is a derivative of linear regression,it quickly adapts to volatility. R2Scale is a double value specifying theR-Squared scale to use in the linear regression calculations. VIDYA (VolatilityIndex Dynamic Average) is a variable-length moving average, which adapts to thevolatility in question by exponentially smoothing data based on standarddeviation .The VIDYA uses a volatility index for weighting the data points.
In this moving average theadjustment is done primarily to improve its responsiveness in times ofheightened volatility. The indicator is more responsive to market pricemovements than a conventional simple or exponential moving average, and can beused for position trading
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