FTB-C000369 / Formula component

Wilder Smoothed Negative DM

Wilder Smoothed Negative DM is the recursively updated Wilder sum of negative directional-movement values.

Also known asWilder negative DM sum

Advanced Formula defined 1 linked topicPublished

Definitions

In plain terms

It uses the same period and staging as smoothed true range so their ratio is aligned.

Technical

The seed sum, first-ready point, zero inputs, missing bars, resets, precision, and revision behavior must match the system contract.

Scope

It retains magnitude but is not yet the normalized -DI line.

Formula

S-DM_t = S-DM_(t-1) - S-DM_(t-1)/n + -DM_t
LaTeX: S^-_t=S^-_{t-1}-\frac{S^-_{t-1}}{n}+-DM_t
SymbolMeaningUnit
S-DM_(t-1)prior smoothed negative-DM sumprice
nWilder periodobservations
-DM_tcurrent negative directional movementprice

Output unit: price

Examples

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

Common misconceptions

  • It retains magnitude but is not yet the normalized -DI line.

Concept relationships

Prerequisites

Related

Required by

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D07-F02-A04 Important

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
published
Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.