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