Ulcer Index

Ulcer Index
It is defined as a pointer invented by G. Martin and McCann. It is mainly used for measuring the danger in investments like commodities, securities, mutual funds and indexes. It is made by factoring in complexity and period of the drop downs from the current peaks. A huge Ulcer Index shows that security represents undue danger and the investor who generally holds will need to wait for a longer time period for the price of the investment to go back to the current highs.