# Custom Formula Collection

Wilder's Volatility

In his book *New Concepts in Technical Trading Systems*, J. Welles Wilder Jr. talks about volatility and describes his Volatility Index and Volatility System. Both of these can be performed in MetaStock^{TM} for Windows. This document describes how to construct both the index and the system.

The Volatility Index (VI) is described by Wilder as:

VI _{Today} = (13 * VI _{Prev} + TR_{1}) / 14

where TR1 is today's true range.

He defines the true range as the greatest of the following:

- The distance from today's high to today's low

- The distance from yesterday's close to today's high, or

- The distance from yesterday's close to today's low.

In MetaStock version 5.0 or higher you would use the following function.

VI Today = **ATR(14)**

The Volatility System is:

Enter Long

Cross(C,Ref(LLV(C,7),-1)+(Ref(ATR(7),-1)*3))

Enter Short

Cross(Ref(HHV(C,7),-1)-(Ref(ATR(7),-1)*3),C)

For additional help with formulas, please see the Formula Primer.

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- Creating Custom Formulas
- Absolute Breadth Index
- Advance / Decline Line with Negative Volume
- ADX/ADXR Custom (without rounding)
- Alpha and Beta
- Arms Index (TRIN)
- Average-Modified Method
- Breadth Thrust
- CCI Moving Average Crossover System Test
- Chande's Momentum Oscillator
- Combining Trend and Oscillator Signals System Test
- Commodity Channel Index Buy and Sell Signals
- Comparative Relative Strength
- Comparative Relative Strength Exploration
- Coppock Curve
- Derivative Moving Average
- Detrended Price Oscillator
- Disparity Index
- Displaying the Price of a Security in 32nds and 64ths
- Divergence between the Close and an Indicator
- Dynamic Momentum Oscillator
- Elder Ray and The Force Index
- End Point Moving Average
- Genesis of a Simple Futures Trading System
- Historical Volatility Daily
- Historical Volatility System, Connors and Raschke's
- Historical Volatility Weekly
- InSync Index
- Investor Preference Index
- Keltner Channels
- Ken Roberts' Formulas
- Kurtosis Indicator
- MACD Histogram
- Market Facilitation Index
- Market Facilitation Index Expert Advisor
- Market Thrust Oscillator
- Martin Pring's KST Formulas
- Mass Index
- McClellan Oscillator
- McClellan Summation Index
- Modified VIX Indicator
- Money Flow Index
- Moving Average of Only One Day of a the Week
- Natenberg's Volatility
- New Advance Decline Line
- Pathfinder Trading System
- Polarized Fractal Efficiency
- Price Action Indicator (PAIN)
- Price Volume Rank
- Random Walk Index
- Rate of Change Since a Specific Date
- Regression Oscillator and the Slope/Close Indicator
- Relative Strength Index, Custom (RSI)
- Relative Volatility Index (RVI)
- Slope of a Line
- Slope of a Linear Regression Line
- Standard Error Bands
- STIX Oscillator
- Stochastic %D
- Stochastic Relative Strength Index
- Tick Line Momentum Oscillator
- Trading Channel Index
- Wilder's Volatility
- WillSpread by Larry Williams