wilderma

A variant of the Exponential Moving Average using α = 1/N instead of 2/(N+1). Provides smoother averaging than standard EMA, commonly used in RSI and ATR.

Parameters

• source (source): Data series to calculate Wilder MA on - price field (close, open, high, low) or indicator output
• periods (int): Number of periods for the moving average
• Common values: 14 (standard for RSI/ATR), 20

Formula

Wilder MA = EMA with α = 1/N

Where:
- α = smoothing factor = 1/periods
- Standard EMA uses α = 2/(periods+1)
- Wilder's is smoother than standard EMA

Examples

wilderma(close, 14);  # 14-period Wilder MA (used in RSI)
wilderma(close, 20);  # 20-period Wilder MA
x = wilderma(close, 14); close > x;  # Price above Wilder MA

Returns

Wilder moving average value

Notes

• Smoother than standard EMA due to smaller smoothing constant
• Preferred by Wilder for technical indicators
• More weight on historical data compared to standard EMA