WMA (Wilder's Moving Average) is a weighted moving average indicator. It was developed by Welles Wilder and presented for the first time in his book New Concepts in Technical Trading in 1978.

What is Wilder's smoothing?

Wilder's smoothing is a type of exponential moving average. It takes one parameter, the period n , a positive integer. ... It is equivalent to a 2n-1 Exponential Moving Average. For example, a 10 period Wilder's smoothing is the same as a 19 period exponential moving average.

How do you calculate Wilders average?

Welles Wilder's Moving Average Formula

The standard exponential moving average formula converts the time period to a fraction using the formula EMA% = 2/(n + 1) where n is the number of days. For example, the EMA% for 14 days is 2/(14 days +1) = 13.3%. Wilder, however, uses an EMA% of 1/14 which equals 7.1%.