The Trader's Journal, June 2006
Cover Story Featuring Interview with J. Welles Wilder
Download PDF Reprint of the article.
FORBES Magazine (October, '80) singled out Mr. Wilder as "the premier technical trader publishing his work today."
BARRON'S (July '84) states that: "In 1978, the basis of mathematical analysis was expanded when J. Welles Wilder, Jr. published New Concepts in Technical Trading Systems.
FINANCIAL WORLD (July '85) acknowledges that, "Over the years, Wilder has developed more accurate commodity trading systems and concepts than any other expert."
J. Welles Wilder Jr. started his working life as a mechanical engineer, and remained an engineer for just seven years. This overlapped with his investing in the real estate market which he then did full time for a few years. His partners bought him out in the early 1970s.
He commenced 13 years of full-time market research and trading in his "retirement." He became interested in buying silver, and concluded that futures were the best way to gain leverage. He embarked to study and learn all he could about futures markets.
Mr. Wilder soon became recognized as a market master, having made major contributions in the field of technical analysis. He has written many articles on trading, appeared on numerous radio and television programs, and conducted technical trading seminars in Asia, Australia, Canada, USA, and Europe. He has also developed the Delta market timing software, One Day at a Time. Around the world, there are probably more traders using Mr. Wilder's systems and methods than any other discipline.
Welles Wilder is best known for his technical indicators – now considered to be core indicators in technical analysis software. These include Average True Range, the Relative Strength Index, Directional Movement and the Parabolic Stop and Reverse.
The following is a candlestick chart of News Corporation, showing Welles Wilder’s Parabolic S&R (dotted lines), his Directional Movement Index, and his Relative Strength Index, respectively.
Chart – A Gann Analyst 3 Chart of News Corporation
Being a trader at heart, Mr. Wilder understood what the real factors were that determined whether a trader was likely to be successful or not. In an interview in Technical Analysis of Stocks and Commodities magazine, he stated:
"… I’ve found that the most important thing in trading is always doing the right thing, whether or not you win or lose… this is market savvy… money management... I would go so far as to say that whether one makes money in the markets depends on whether or not one uses the proper money management – how much you make depends on where you enter and exit the markets."
Wilder, J. Welles., "Wilder’s Back," February 1986
In the early 80's, Welles Wilder® founded the Delta Society International. His purpose was to share his discovered “secret of the perfect order behind the markets”. This order, the Delta Phenomenon, is the basis of all market movement relative to time. It is the basis of all technical analysis. It is the most basic thing about markets. It is the beginning point. All other methods of technical analysis pale when compared to the fact that there is perfect order in all markets. As you will learn, the Delta Phenomenon is perfect. That is, it always follows the defined discipline that rules it. Wilder states, "I have solved the Delta Phenomenon for many different markets over hundreds of years of data and I have never seen a failure in this order."
Wilder gives a personal account of his discovery of the Delta Phenomenon in The Delta Story.
Technical Analysis of Stocks and Commodities (Feb. 1986) "It's not often that truly original discoveries are made in technical market analysis. J. Welles Wilder, however, lays claim to an entire collection of systems that have reshaped contempory commodities trading and analysis."
Technical Analysis of Stocks and Commodities (Oct 2002). In an article titled The Titans of Technical Analysis, Welles Wilder was selected as one of the “Heroes of Technical Analysis” with the following accolades:
J. Welles Wilder — Engineer, turned real estate developer, turned technical analyst, is credited with developing some of the most widely used and modified technical indicators in the field, from Average True Range to the Parabolic Time/Price System to the Relative Strength Index. His first book, New Concepts in Technical Trading Systems, remains an important reference for both stock and futures traders.