Welles Wilder "New Concepts in Technical Trading Systems."


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  • The indicator is based on statistical concepts that were first introduced by Welles Wilder in his book, "New Concepts in Technical Trading Systems."
  • The Indicator plots these statistical percentages based on the "Bell Curve" of a given range parameter that can be used in trading as entries, or as profit targets and stop losses.
  • Multiple time frames can be used. When trading a 5 min chart, you can get plots from a 60 Min Range, or any time frame you choose. Monthly, Daily, RTH Session, or take the range from the first hour of trading over 14 periods. But you are not stuck with just using 14 periods. You can customize the period to your preference. If intraday trading, you may want 20 or 50 periods.
  • You can also derive knowledge from the slope of the range. A contracting range is easily seen by the down slope. An expanding range is seen by a rising slope. Likewise, when the range is flat, you can also see that clearly and decide whether or not to enter the market or wait until range is expanding before entering. Does anyone have this built you can trade a reversal bar from these levels and yield a good return, let us know thanks.



Sorry to ask, but I'm holding his book trying to find which section deals with these concepts. Could you tell me where in the book I can study this a little more? Thanks


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I have the book, even coded up the Trend Balance Point System as an exercise in learning to code for thinkorswim. Was thinking of trying the Trend Reaction System next. Not posted anything here yet because was unsure of any copyright issue problems.

Why not mention the exact name of the strategy you are interested in? There are half a dozen or so in the hundred something pages of the book.