Disparity Index (DI)

Measures how far the close has stretched above or below its own moving average, expressed as a percentage of that average. Above zero the close trades above its average (bullish pressure), below zero beneath it (bearish pressure). Extreme readings flag an over-extended move that is prone to snap back toward the average.

Live Demo

Pick a market regime to see how DI(14) reacts:

Usage

import {DisparityIndex} from 'trading-signals';
 
// DisparityIndex yields results once 14 inputs have been added
const disparityIndex = new DisparityIndex(14);