December 9, 2018

Disparity Index

Source: Investopedia

A technical indicator that measures the relative position of the most recent closing price to a selected moving average and reports the value as a percentage. A value greater than zero suggests that the asset is gaining upward momentum, while a value less than zero can be interpreted as a sign that selling pressure is increasing.


Extreme values of this indicator can be a very useful tool for contrarian investors to foretell periods of exhaustion.

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