UK Accounting Glossary
The Inertia Indicator is used to determine the prevailing price trend.
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.
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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This glossary post was last updated: 22nd March 2020.