Welles Wilder Volatility
Welles Wilder Volatility is a trend-following system. It is also a true reversal system which means that the position is reversed at every stop.
Study Type: Overlay
Description
Welles Wilder Volatility is a trend-following system. It is also a true reversal system which means that the position is reversed at every stop.
Formula
VI today = N*VI previous+TR1/X
Where VI = Volatility Index X = Time period N= Time Period-One Unit TR1 = Today's True Range
Parameters
- Period: 14 - the number of bars, or period, used to calculate the study.
- Constant: 20