Welles Wilder

Welles Wilder Interview

©2007, Reprinted with permission of The Trader’s Journal magazine (www.tradersjournal.com) Welles Wilder is best known for his technical indicators – now considered to be core indicators in technical analysis software. These include Average True Range, the Relative Strength Index, Directional M

Wilders Volatility Index

Developed by J. Welles Wilder, Jr. this indicator is intended to measure true range over time and is also known as Average True Range. It is the greatest difference between: This period’s high and low, the previous period’s close and this period’

Wilders Smoothing Indicator

Developed by J. Welles Wilder, Jr. this indicator is similar to the Exponential Moving Average. It is slow to reflect price changes compared with other moving averages. Wilder’s Smoothing is used as a part of Wilder’s RSI. Chart cour

RSI

The Wilder’s Relative Strength Index (RSI) is a rate of change oscillator developed by J. Welles Wilder, Jr. This indicator is used to identify positive and negative divergences with price, and to signal overbought or oversold conditions. A reading of 70% or

Welles Wilder and his Indicators

An Engineer, turned real estate developer, turned technical analyst, Welles Wilder developed several important technical indicators including Average True Range, the Relative Strength Index, Directional Movement and the Parabolic Stop and Reverse. See also: Interv

Parabolic SAR

Introduced by Welles Wilder in his 1978 book, New Concepts in Technical Trading Systems, the Parabolic SAR (PSAR) is an indicator that sets trailing price stops for long or short positions. It is more popular for setting stops than for establishing direction or tr

Directional Movement Indicator (DMI)

Developed by Welles Wilder and explained in his book, New Concepts in Technical Trading Systems, the Directional Movement Indicator can be used by itself or as a filter on a trend-following system. The DMI helps determine if a security is trending. In a D

Average Directional Index (ADX)

Developed by J. Welles Wilder, the Average Directional Index (ADX) measures the degree of directional movement and reflects strength of a trend. The ADX line measures the directional movement as an oscillator on a scale of 0 to 100. Readings below 20 reflect a weak trend and readin