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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives
SPY 671.910.0%4:00 PM EST

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To: Vendit™ who wrote (44267)1/21/2013 7:44:28 AM
From: GROUND ZERO™  Read Replies (2) of 218817
 
Thanks, great chart, that's good to know... the Ulcer Index actually measures volatility, but only the down volatility for a given period of time... I think it really behaves very much like the RSI...

To calculate the Ulcer Index (UI), you subtract the high price of the move from the current price, and then divide by the high price... here's the actual formula:



en.wikipedia.org

Here's the daily chart of AAPL for the past year... you can see it form a bullish wedge with one attempt to break down below it... that was a bear trap... using the 65% rule, I think AAPL is now ready to break out of that wedge, my hunch is higher but only based on the configuration of the chart pattern itself...



GZ
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