Ulcer Index (UI) shows the volatility decrease risk. It indicates lowering volatility, i.e. a possible drawdown or recovery within a given period.
The indicator has three input parameters:
- Period - calculation period;
- Inverse pair - inverse calculation;
- Applied price - price used for calculations.
The higher the indicator value, the greater the probability of volatility decrease.

Fig.1. Direct calculation

Fig.2. Inverse calculation