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_tSTR_t=STR_{t-1}-\frac{STR_{t-1}}{n}+TR_t| Symbol | Meaning | Unit |
|---|---|---|
STR_(t-1) | prior smoothed true-range sum | price |
n | Wilder period | observations |
TR_t | current true range | price |
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
- 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.