Vidya Indicator
Platform: MT4 Type: Trend Last update: October 15, 2024The Vidya Indicator for MT4 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.
How to trade with the vidya indicator?
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.
Buy Signal
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
Sell Signal
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
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