Candleread
Start Grade 1
6Grade 6: Indicator Lab
Technical Analysis + Price Action · Moving Averages

Wilder smoothing vs standard EMA

Distinguish Wilder smoothing from the standard EMA and explain why some indicators use it instead.

3 min read+25 XPLesson 20 of 96
Start reading

Lesson path

Technical Analysis + Price Action

Moving Averages

Lesson 20 of 9621%
1. Read the concept2. Answer the check3. Save after the check

Pass the check before saving this lesson.

Pass the check to unlock nextOpen track mapChange starting point
Lesson 20 of 96Technical Analysis + Price ActionMoving Averages

Today's tiny win: make one idea click.

Distinguish Wilder smoothing from the standard EMA and explain why some indicators use it instead.

Learn itSpot itPass the check

The other moving average

There's a third moving average that doesn't get its own line on most charts but is hiding inside several indicators you'll use constantly: Wilder smoothing. It was developed by J. Welles Wilder for his original indicator designs in the late 1970s, and it lives inside RSI, ATR, and ADX. Understanding it explains why those indicators behave the way they do.

Wick shows a calculator reading 0.0714 from 1 divided by 14, teaching that Wilder smoothing gives the newest close about half the weight of a standard EMA.Wilder 14 weight = 1 ÷ 140.0714
Wick saysWilder gives today's close 1/14, about 7%, while a 14 EMA gives about 13%.

Math difference. The standard EMA uses a multiplier of 2 / (N + 1). For a 14-period EMA, that's 2/15, about 0.1333 — so today's close gets about 13% weight. Wilder's smoothing uses a multiplier of 1 / N. For a 14-period Wilder, that's 1/14, about 0.0714 — today's close gets only about 7% weight. Same period setting. Roughly half the responsiveness.

Practical equivalence: a 14-period Wilder smoothing has roughly the same responsiveness as a 27-period standard EMA. The rule is that Wilder of length N is about equal to a standard EMA of length 2N − 1. So when an indicator setting says '14-period Wilder,' your gut should translate that to 'around a 27-period EMA in feel.'

Why this matters for you: when you plot a 14 EMA on price and it doesn't match the smoothing inside a 14-period RSI or ATR, that's not a bug. The RSI is using Wilder smoothing internally with a gentler multiplier. Same period number, different math, different speed. Most charting platforms let you toggle this, but the default for Wilder's original indicators (RSI, ATR, ADX) is Wilder smoothing, not standard EMA.

Wick points at a chalkboard: Wilder N is about an EMA of 2N minus 1, so Wilder 14 is about EMA 27, teaching how to translate Wilder settings.Rule of thumbWilder N ≈ EMA 2N - 1Wilder 14 ≈ EMA 27
Wick saysA 14-period Wilder line moves about like a 27-period EMA.
Wick stands by three cards for RSI, ATR and ADX, each saying Wilder inside, teaching that these indicators use the slower Wilder smoothing by default.RSIWilderinsideATRWilderinsideADXWilderinside
Wick saysRSI, ATR and ADX all use Wilder smoothing as the engine inside.

Recap: Wilder smoothing uses 1/N as its multiplier. Standard EMA uses 2/(N+1). A 14 Wilder behaves like a 27 EMA in responsiveness. Wilder is the default smoothing inside RSI, ATR, and ADX — not a separate indicator, but the engine inside them.

Knowledge check

Answer before moving on.

0 / 3 answered

1. What multiplier does Wilder smoothing use for a 14-period setting?

2. A 14-period Wilder smoothing is roughly equivalent in responsiveness to a standard EMA of what length?

3. Which of these indicators uses Wilder smoothing by default?

Lesson handoff

Pass the check before saving.

Use the knowledge check first. After you pass it, this card turns into the save-and-continue handoff.

Pass the check firstOpen track map