I understand Wilder was a very smart man, and I’ve read his original paper that @dpaterso sent me, but I feel like I’m missing something.
Why didn’t he use the same approach to come up with a rolling index which measures the ratio between average candle bodies and average candle wicks? It seems to me like this would be a fantastic measure of unpredictability or in some ways volatility.
He could have made it much like his ADX calculation, with a primary line, and two additional + and - lines, one for the high wicks and one for the low wicks. At the very least I would imagine an indicator like this might give some interesting information, and maybe even some useful information.
#newbthoughts.