Dual Ulcer Index [DW]

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 creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.

For quick access on a chart, add this script to your favorites — learn more here.

DonovanWall

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