Inertia indicator is based on the concept of physics. Inertia or sluggishness in the body based on resistance to change direction or speed with which a body moves.
Dorsey argues that the trend is a result of inertia of the market. It is necessary to invest much more energy to change the current trend of energy needed to maintain the current trend.
The trend is therefore measures of market inertia.
Dorsey argues that the volatility is the simplest and most accurate measure of inertia. Inertia is based on Relative volatility Index (RVI) indicators smoothed using linear regression.
Positive momentum indicates that the long-term trend is positive and vice versa.
The trend is therefore measures of market inertia.
Dorsey argues that the volatility is the simplest and most accurate measure of inertia. Inertia is based on Relative volatility Index (RVI) indicators smoothed using linear regression.
Positive momentum indicates that the long-term trend is positive and vice versa.
Positive inertia
Inertia> 50
Negative inertia
Inertia <50
Download
Dorsey Inertia.mq4
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