Definitions
In plain terms
It begins with the arithmetic mean of the first n gains and then updates using alpha one over n.
Technical
The seed count, period, first-ready index, zero gains, missing values, state, revision suffix, and precision must be frozen.
Scope
It is not a rolling simple average after initialization.
Examples
- A governed lesson calculates or identifies Wilder Average Gain only after its inputs, window, state, scale, and edge cases are declared.
Common misconceptions
- It is not a rolling simple average after initialization.
Concept relationships
Prerequisites
Required by
Where this concept is used
Evidence and governance
- Relative Strength Index TA-Lib · first party technical publication
Supports: preferred label, short definition, technical definition
Limits: Seed, flat-series behavior, unstable periods, and platform compatibility must be frozen before claiming parity.
- New Concepts in Technical Trading Systems J. Welles Wilder Jr. · first party methodology
Supports: historical attribution
Limits: The bibliographic page alone is not an executable specification; equality, seeds, and state transitions require pinned rules.
- Reviewed by
- fintech-builder-batch-008
- Last reviewed
- 2026-07-29
- Next review
- 2027-07-29
- Record status
- published