The Ulcer Index measures downside risk by quantifying the depth and duration of drawdowns from recent highs. Lower values indicate less drawdown risk; higher values indicate more pain.
Parameters (14)
X-Axis: Time (candle intervals)
Y-Axis: Ulcer Index (0+)
Line: 14-period Ulcer Index
Interpretation
Rising UI = deeper/longer drawdowns
Falling UI = recovery, less risk
Compare across assets for risk assessment
Data refreshes periodically — not real-time
Trading Signals
Rising Ulcer Index = deepening drawdown
Falling Ulcer Index = recovery underway
Use for risk-adjusted returns (Ulcer Performance Index)
Price Overlay
Close Price: Daily closing price (right Y-axis)
Rising UI + falling price = deepening drawdown
Falling UI + rising price = recovery underway
UI spike at price low = maximum drawdown pain point