Disparity Index

The Disparity Index measures the percentage variation of the price level from a Moving Average of the data. You can choose which Moving Average is used under 'edit, whether this be a Simple Moving Average, an Exponential Moving Average or an Adaptive Moving Average.

Parameters: Period & selection between: Simple Moving Average (SMA), Exponential Moving Average (EMA) or Adaptive Moving Average (AMA).

For additional help on what the different parameters mean, that isn't included on this page, click here.

Disparity Index

Here is an example of the Disparity Index chart study (on a London Stock Exchange graph)

Reading the study:

Similar to the Rate of Change chart study. When the Disparity Index is above 0 (or crosses above it from below), this suggests that the price level is gaining upward Momentum. While a Disparity Index below 0, can be an indication that selling pressure is rising.

Reading the study:

Here is an example the Disparity Index and the price line (of the London Stock Exchange), and what it may indicate