FTB-C000367 / Formula component

Wilder Smoothed True Range

Wilder Smoothed True Range is the recursively updated Wilder sum of one-bar true-range values.

Also known assmoothed TR sum

Definitions

In plain terms

It starts from a declared n-value sum and then subtracts one-nth of prior state before adding current true range.

Technical

The seed window, period, first-ready point, missing bars, resets, precision, and revision suffix must be frozen.

Scope

It is a smoothed sum used in directional indicators, not necessarily the reported ATR average.

Formula

Smoothed TR_t = Smoothed TR_(t-1) - Smoothed TR_(t-1)/n + TR_t
LaTeX: STR_t=STR_{t-1}-\frac{STR_{t-1}}{n}+TR_t
SymbolMeaningUnit
STR_(t-1)prior smoothed true-range sumprice
nWilder periodobservations
TR_tcurrent true rangeprice

Output unit: price

Examples

  • A governed lesson calculates or identifies Wilder Smoothed True Range only after its parameters, state, timing, and edge cases are declared.

Common misconceptions

  • It is a smoothed sum used in directional indicators, not necessarily the reported ATR average.

Concept relationships

Where this concept is used

Evidence and governance

  1. TA-Lib Directional Movement Index Implementation TA-Lib · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: Zero-denominator and compatibility behavior can differ from the Fintech Builder package and must be stated explicitly.

Reviewed by
fintech-builder-batch-007
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
evidence reviewed

This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.