Welles Wilder’s smoothing = XAVG(PeriodLen*2-1)

I was referred to a very excellent blog http://etfhq.com/ and wanted to confirm that Welles Wilder’s trick (ease of calculating) smoothing algorithm was indeed equivalent to an exponential moving average but twice the length – 1.  This blog by Derry Brown is worth taking a look at.

Here is my TS code for verify the length difference between WellesSmooth and Exp. Smooth:

{Test for equivelance}

if currentBar = 1 then
begin
value1 = average(c,14);
end;

if currentBar > 1 then
begin
value1 = (13*value1+c)/14; //Wells Wilder Smoothing
end;

plot1(value1,"WSMA",red);
plot2(xaverage(c,14),"XMA",blue);
plot3(xaverage(c,27),"2X-1XMA",green);

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