Introduction to the Vidya Indicator
The Vidya Indicator is a trend-following forex indicator that works in a very similar manner to the Moving Average. The abbreviation Vidya stands for the Variable Index Dynamic Average. The formula for Vidya is based on the Exponential Moving Average (EMA), but additionally with the dynamically altering period of averaging, making it better in identifying market trends.
The Vidya Indicator fits all kinds of timeframes and currency pairs. It is displayed directly on the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
How does it work? How to apply in trading?
Trading Rules Explanation
The trading rules that applies for Vidya Indicator are very simple. The market is considered bullish when the price is trading above the Vidya moving average. Conversely, the market is considered bearish when the price is trading below the Vidya moving average. Detailed instructions are provided below.
Follow these steps for a long trade:
- Candlesticks are located above the Vidya moving average
- Price forms bullish trading pattern
- Price swings higher from recent low swing
- Buy trade is triggered after the above conditions are met
- Set stop loss a few pips below the last swing low of the market
- Take profit or exit whenever the price drops below Vidya or use your own method of trade exit
Follow these steps for a short trade:
- Candlesticks are located below the Vidya moving average
- Price forms bearish trading pattern
- Price swings lower from recent high swing
- Sell trade is triggered after the above conditions are met
- Set stop loss a few pips above the last swing high of the market
- Take profit or exit whenever the price rally above Vidya or use your own method of trade exit
As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.
How to set up the Vidya indicator in MT4?
Download the Vidya.rar archive at the bottom of this post, unpack it, then copy and paste the Vidya.ex4 or Vidya.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL4 > Indicators (paste here).
Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
The Vidya indicator is well worth adding to your trading collection. A good forex indicator will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it.
Download Free Forex MT4 Vidya Indicator
To download the Vidya Indicator for Metatrader 4 (MT4) for free just click the button below: