yandex watch
forex ask logo
forex ask banner
Welcome, Guest

Forgot Password

Not yet a Member? Register Here

Loader
Question Details
Username: Peter

Rating:
Guru Stars

Asked to: Dara Madee

Date Created: 08 Sep 2017
Category 25
Tag Financial
Question Please give the definition of 'Ulcer Index - UI'.
Advice from Guru
Hello Peter,

A technical indicator that measures downside risk, in terms of both depth and duration of price declines. The Ulcer Index (UI) increases in value as the price moves farther away from a recent high, and falls as the price rises to new highs. The indicator is usually calculated over 14 days, with the UI showing the percentage drawdown a trader can expect from the high over that period.

The greater the value of the UI, the longer it takes for a stock to get back to the former high.

The indicator is calculated in three steps:

1. Percentage Drawdown = [(Close - 14-period High Close)/14-period High Close] x 100
2. Squared Average = (14-period Sum of Percentage Drawdown Squared)/14
3. Ulcer Index = Square Root of Squared Average

List of Gurus

  • Guru Most read Heng Kim
    Heng Kim

    Hi PrettyWoman, The job market is the market in which employers search for

    Read more
  • Guru Most read Anton Luyten
    Anton Luyten

    Hello Fluffy, A harami cross is a Japanese candlestick pattern that consists

    Read more
  • Guru Most read Chaoxiang Lee
    Chaoxiang Lee

    Hi Maria, A caplet is a kind of call option based on interest rates. The

    Read more
  • Guru Most read Apinya Kamon
    Apinya Kamon

    Hello ForexGuy, A false market occurs when prices are manipulated and impacted

    Read more
  • Guru Most read Tom Burke
    Tom Burke

    Hello LuckyWoman, The yearly probability of living is determined by consulting

    Read more
  • Guru forex ask most-read Chaoxiang Lee
    Chaoxiang Lee

    Hi LuckyWoman, Front running is the unethical practice of a broker trading an

    Read more
  • Guru forex ask most-read Heng Kim
    Heng Kim

    Hello Lucky Woman, A chart that displays the high, low, opening and closing

    Read more
  • Guru forex ask most-read Chaoxiang Lee
    Chaoxiang Lee

    Hello ForexGuy, C-note is a slang term for a $100 banknote in American

    Read more
  • Guru forex ask most-read Tom Burke
    Tom Burke

    Hello Andrew, A simple moving average (SMA) is an arithmetic moving average

    Read more
  • Guru forex ask most-read Goro Yang
    Goro Yang

    Hi Fluffy, The price level which, historically, a stock has had difficulty

    Read more
  • Guru forex ask newest Heng Kim
    Heng Kim

    Hi PrettyWoman, The job market is the market in which employers search for

    Read more
  • Guru forex ask newest Anton Luyten
    Anton Luyten

    Hello Fluffy, A harami cross is a Japanese candlestick pattern that consists

    Read more
  • Guru forex ask newest Chaoxiang Lee
    Chaoxiang Lee

    Hi Maria, A caplet is a kind of call option based on interest rates. The

    Read more
  • Guru forex ask newest Apinya Kamon
    Apinya Kamon

    Hello ForexGuy, A false market occurs when prices are manipulated and impacted

    Read more
  • Guru forex ask newest Tom Burke
    Tom Burke

    Hello LuckyWoman, The yearly probability of living is determined by consulting

    Read more