Ulcer Index (14)Volatility

Timeframe M1 · unit norm

What it measures

The root-mean-square of percentage drawdowns from rolling 14-bar highs. Measures the depth and duration of pullbacks - a downside-specific volatility that ignores upward moves.

How Janira reads it (bullish vs bearish)

Near zero means the price has not pulled back meaningfully from its 14-bar peak - low downside distress. Higher values (e.g. 1-3%) indicate significant retracements from recent highs within the window. Unlike symmetric volatility measures, UI only penalises drawdown, not upward movement.

In plain language

Ulcer Index asks: 'How painful have the dips been over the last 14 bars, measured from the highest point reached?' A reading near zero means the price has barely dipped from its peak. A reading of 3% means the average dip-from-peak squared was significant.

Scenarios

• UI near 0: Price has been trending up or holding near the 14-bar peak with minimal retracement. Low downside distress.
• UI 0.5%-1.5%: Moderate pullbacks within the window. Normal for active trending bars with shallow consolidations.
• UI > 2%: Deep or prolonged drawdowns from the 14-bar high. The market has been experiencing meaningful retracements.
• UI rising sharply: A sudden significant pullback from recent highs is underway or has just occurred within the window.

More volatility indicators

Janira computes Ulcer Index (14) deterministically from live price action, the same way for every reading - no discretion, no hidden weighting. This page explains the method; it is not a live reading and not advice.