The Ulcer Index (UI) indicator is a risk assessment tool that measures the depth and duration of price declines from previous highs, providing insights into downside volatility.

It can be used to evaluate the risk levels associated with a certain investment, helping traders make informed decisions and risk-adjusted performance. A higher Ulcer Index reading indicates greater downside risk, while a lower reading suggests lower risk.

A full breakdown of the Ulcer Index can be found here: https://howtotrade.com/indicators/ulc...

KEY POINTS
The Ulcer Index indicator was designed to assess the magnitude and duration of price declines from their previous highs.
It can also be used to identify overbought and oversold conditions.
The UI indicator best suits long-term investors looking to buy an asset following a significant price decline.
The greater a drawdown, the greater the increase in value.