everget

Dorsey Inertia

This indicator was originally developed by Donald Dorsey (Stocks & Commodities , V.13:9 (September, 1995): "Refining the Relative Volatility Index").

Inertia is based on Relative Volatility Index (RVI) smoothed using linear regression .

In physics, inertia is the tendency of an object to resist to acceleration. Dorsey chose this name because he believes that trend and inertia are related and that it takes more effort and energy to reverse the direction of a stock or market than to keep it in the same direction. He argues that the volatility is the simplest and most accurate measure of inertia.

When the indicator is below 50, it signals bearish market sentiment and when the indicator is above 50 it signals a bullish trend .

Good luck!

Freelance -> Telegram: @alex_everget

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