What Is The Inertia Indicator & How To Trade With It

Inertia Indicator

In Physics, inertia is a continuous motion of the body until an outside force acts upon it. In financial markets, the concept of inertia was given by Donald Dorsey in the 1995 issue of Technical Analysis of Stocks and Commodities through the Inertia Indicator. The Inertia Indicator is moment-based and is an extension of Dorsey’s Relative Volatility Index (RVI). It defines the long-term trend and the distance of its extension. What is the Inertia Indicator? Dorsey stated that a trend is an “outward result of inertia.” According to him, the market takes greater force to reverse its course than to …READ MORE