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Ulcer Index: Drawdown Calculation and TradingView Interpretation

· 4 min read
Pineify Team
Pine Script and AI trading workflow research team

Ulcer Index summarizes squared percentage drawdowns from a reference high. Larger or more persistent drawdowns raise the reading, while a series repeatedly at new highs can have a low reading despite substantial upward movement. It describes the selected historical series, not a forecast of maximum future loss.

Ulcer Index shown on a TradingView chart