Click here to Login








Wilder Volatility Index - Average True Range Trading System

by Brian Brown, 5270 days ago
Share |


The Wilder Volatility Index Trading System is a strategy introduced and developed by J. Welles Wilder in the "New Concepts in Technical Trading Systems" book.
The trading strategy is a long/short system that buys a stock or a security when a bull/long signal is generated, then exits and shorts the security when a bearish/short signal is generated.

The bullish signal occurs when the close price crosses above the following indicator: Previous value of the lowest close price for the last 7 trading days plus the previous value of the Average True Range using a 7-bar period multiplied by three.
The bearish signal occurs when the above formula (Minus sign is used instead of the Plus sign in the short signal) crosses above the close price.

The strategy doesn't contain sell or cover trading rules. A trade is automatically closed when a reverse order is found. The position is closed when it is currently shorted and a long signal is generated or when it is bought and a short signal is generated.

The trading system uses the Average True Range (ATR). You can also use a technical analysis indicator called Wilders Volatility Index instead of the Average True Range. This indicator is almost the same as the ATR; the difference is that it allows you to specify a constant parameter that is used to increase or decrease the weight of previous True Range values.
The Wilders Volatility Index can be downloaded here Wilder Volatility Index - Average True Range




You have to log in to bookmark this object
What is this?




Type: Trading System

Object ID: 571


Country:
All

Market: All

Style:
Technical Analysis

Reviews
You must log in first

Join now
and get instant access for free to the trading software, the Sharing server and the Social network website.
Click here


Related objects

Empty

Number of reviews
Click to add a review
Average rate
Click to rate this item
Number of times this object was downloaded
Number of rates the current object received
Report an object
if you can't run it for example or if it contains errors
Click to report this object

Technical Analysis


Fundamental Analysis



Random Blog Posts

How to create a trading indicator that uses stock news

How to create your own technical analysis indicators

Create a stock index or a trading indicator using the composite tools

Create a trading strategy using the money management tool - Part 2

Create a trading strategy using the money management tool - Part 1

How to create a market timing system - Part 3

Correlation of market indicators

How to create a market timing system

Show All

Number of reviews
Click to add a review
Average rate
Click to rate this item
Number of times this object was downloaded
Number of rates the current object received
Report an object
if you can't run it for example or if it contains errors
Click to report this object






QuantShare
Product
QuantShare
Features
Create an account
Affiliate Program
Support
Contact Us
Trading Forum
How-to Lessons
Manual
Company
About Us
Privacy
Terms of Use

Copyright © 2024 QuantShare.com
Social Media
Follow us on Facebook
Twitter Follow us on Twitter
Google+
Follow us on Google+
RSS Trading Items



Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.