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Ulcer Index

From MultiCharts

Ulcer Index calculates the stress level related to the volatility of a security. The calculation is based on the depreciation of the price over a period of time specified in Length input.

According to Peter Martin and Byron McCann, "the higher an investment's Ulcer Index, the more likely investing in it will cause ulcers or sleepless nights".

Default Inputs

Price (Close) - price value used for Ulcer Index calculation.

Length (14) - number of bars included in calculation of Ulcer Index.

SafeLevel (5) - safety level Ulcer Index is considered high if it crosses above it.

Plots

Plot1 (UlcerX, Red) - Ulcer Index value.

Plot 2 (SafeLevel, Dark green) - Safety Level value.

The plots will be displayed in a separate subchart below the price data when the indicator is applied to a chart.