Double-Smoothed Wilder Moving Average

Summary

This short note explains Wilder’s moving average and describes a double-smoothed variant intended to respond more quickly to price changes while retaining a smooth line. Wilder’s method uses a weighting factor of one divided by the lookback length, whereas the standard exponential moving average uses two divided by the lookback length plus one. The note also states that Wilder’s average and the smoothed moving average can produce equivalent values despite differences in how they are calculated.

The proposed double smoothing is presented as a general-purpose moving average that can be used like other averages. The document offers a conceptual description and mentions a visual comparison with a smoothed moving average, but supplies no plotted data, parameter guidance, trading rules, or performance evidence. It does not explain the exact double-smoothing calculation, initialization choices, or how responsiveness and lag vary across settings. Traders would need those details and independent testing before using it as a signal.

Key ideas

• Wilder’s moving average uses a weight of one divided by the period length.
• The note distinguishes that weight from the conventional exponential moving average weight.
• It says Wilder’s average and the smoothed moving average are equivalent in value.
• The double-smoothed variant is intended to be more responsive while remaining smooth.
• The note provides no exact construction details or evidence of trading performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.