Trenddraws on the price

Dots that trail the trend and accelerate toward it the longer it runs. Price tagging a dot flips the trail to the other side.

On this chart: 0.02 step, 0.2 maximum, Wilder's original recursion.

Wilder's "stop and reverse": dots trail below a rising price and above a falling one, moving closer each bar by an acceleration factor that grows every time the trend makes a new extreme — 0.02 at first, capped at 0.2. Young trends get room; old ones get crowded.

The dots also may never enter the prior two bars' range — Wilder's clamp, which keeps ordinary noise from tagging the trail.

Dots below price: uptrend intact, with the nearest dot marking where that reading ends. The accelerating squeeze is the signature — a trend that has run for weeks has its dots pressed close, so even a modest pause flips them.

The dot is a mechanically-defined trailing level, useful as shared vocabulary for where a trend officially fails. For covered calls on a trending holding, the dot's distance describes how much room the trend-following crowd is giving the move before calling it over.

Like everything in this guide, these are descriptions of conditions and reference levels — context for your own decisions, not instructions to trade.