By Islam BarakaDefinitions
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
Tutorials planned
These catalogued topics use this concept, but their complete build has not shipped yet.
- D07-F02-A04 Important
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
- published