Define: Inertia Indicator

UK Accounting Glossary

Definition: Inertia Indicator



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Full Definition of Inertia Indicator


The Inertia Indicator is used to determine the prevailing price trend.

Calculation

The Inertia Indicator is constructed by first calculating the Relative Volatility Index and then smoothing the index by the Linear Regression Indicator.  This indicator takes three parameters. The first two parameters are the standard deviation and smoothing Exponential Moving Average periods for the Relativity Volatility Index calculation. The third parameter is the period used with the Linear Regression Indicator.

Inertia Indicator Interpretation

When this indicator is above 50%, an increasing price trend is indicated. When the indicator falls below 50%, a decreasing price trend is indicated.


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Definition Sources


Definitions for Inertia Indicator are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 22nd March 2020.