Wilder Smoothing Standalone

Wilder's RSI and ATR both smooth their inputs with the same recursive formula, described in his 1978 book "New Concepts in Technical Trading Systems": RMA[i] = RMA[i-1] + (Price[i] - RMA[i-1]) / N This looks like an EMA but is not one - a plain EMA of period N uses a smoothing constant of 2/(N+1), while Wilder's construction uses 1/N, which is shallower for any N greater than 1. The practical effect is a line that reacts more slowly than an EMA of the same nominal period, closer in behaviour to a much longer plain EMA. This is exactly why RSI and ATR feel steadier than an equivalent-period EMA-based oscillator would - the smoothing itself, not the input, is doing more of the work. Plotted standalone here rather than buried inside RSI's gain/loss ratio or ATR's true-range input, it can be applied directly to any price series as a general-purpose slow, steady average. Notes and limitations - Recursive: the first computable bar has no prior RMA value to reference and is seeded with a plain SMA of the first N prices, exactly as Wilder's own RSI/ATR construction seeds itself, rather than starting from a single bare price. - Needs InpPeriod bars of history before the first bar is plotted. - Does not repaint - each closed bar's value is fixed once computed.

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Tags: RSI · Moving Average · ATR · MT5 Indicator · MQL5 Source Code

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