DYO - VIDYA Average

The implementation of the Variable Index Dynamic Average (Vidya) is fairly straight forward using a DYO.

Line A gets the data point for the averages, and the Bar's Close will be used.  Any data point could have been used for the Line A selection.
Line B calculates a 10 period Standard Deviation of the Line A data point.
Line C calculates a 50 period simple average of the Line B standard deviation.
Line D is the ratio of the standard deviation to its 50 period average, call a 'k' factor, which will be used to adust the exponential average parameter.
Line E is the first exponential alpha parameter adjusted by 'k'.  Edit the average alpha factor in the Number field.  The example uses 0.154 for alpha.
Line F uses the alpha*k as its parameter for an Exponential Average of Line A, and plots this as a Blue line.
Line G and H calculate a 2nd alpha*k and the corresponding Expontial average, and plot this as a Red line.
Line I is how a MACD would be calculated which is the difference of the 2 averages. Uncheck the Show boxes on Lines F and G and check the Show box on Line I to plot the the MACD instead of the 2 Vidya averages.

In the chart example, the 2 Vidya averages calculated by the DYO are shown in Blue and Red. The chart also shows 2 Expontial average using the same 0.154 and 0.074 alpha parameters plotted in Dark Green and Dark Purple.  This makes it easy to see the effect the standard deviation 'k' parameter has on the averages.  The Vidya averages respond more quickly to volatility in the market so these averages track price action with less lag.