OPEN-SOURCE SCRIPT

Dual Ulcer Index [DW]

Updated

This study is an experimental variation of Peter Martin's Ulcer Index that calculates the risk measures in the long and short direction for comparison.
The index is a measure of volatility that can be used to locate low risk trading opportunities.

Release Notes

Simple update:
Added an adjustable tolerance zone which can be used to further discern low risk opportunities.

Release Notes

Updates:

Cleaned up the code. Condensed the operations into a singular function.

Shortened the default sampling period.

Added an auto threshold option, which automatically determines the tolerance threshold based on statistical average distance between long and short UIs.

Enhanced the color scheme. The fill color now reflects which direction is dominant, whether the direction is reinforcing or pulling back, and whether the downside risk for the direction is within the threshold boundary or not.

Bar colorization has been added to the script. The color scheme is the same as the fill color.

Removed the background color because it is now unnecessary.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.

Want to use this script on a chart?

DonovanWall

For my full list of premium tools, check the blog:
wallanalytics.com/

Reach out on Telegram:
t.me/DonovanWall

Also on:

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.