It is often said that the candlestick models of the reversal should be applied only when the market is at the high/low price level. The Disparity Index indicator is used to define these levels. I.e. when the histogram bars are blue and rising above the overbought level, you must search the candlestick combinations that signal about down reversal. And, vice versa, if the histogram bars fall below the oversold level and changes the color to red then look if it coincides with some candlestick model of up reversal.
Although you can use a fixed overbought/oversold level (3-10 percents depending on the market and the indicator parameters), this version levels are calculated dynamically. Behavior is the following:
- calculates the absolute value of price change in percentage in each bar
- calculates the average value of these changes for the set period and multiplies it on the coefficient. The received value is the overbought level. The same value with a minus sign is the oversold level
MT5 Indicator – Download Instructions
Disparity Index is a Metatrader 5 (MT5) indicator and the essence of the forex indicator is to transform the accumulated history data.
Disparity Index provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust their strategy accordingly.
How to install Disparity Index.mq5?
- Download Disparity Index.mq5
- Copy Disparity Index.mq5 to your Metatrader Directory / experts / indicators /
- Start or restart your Metatrader 5 Client
- Select Chart and Timeframe where you want to test your indicator
- Search “Custom Indicators” in your Navigator mostly left in your Metatrader 5 Client
- Right click on Disparity Index.mq5
- Attach to a chart
- Modify settings or press ok
- Indicator Disparity Index.mq5 is available on your Chart
How to remove Disparity Index.mq5 from your Metatrader 5 Chart?
- Select the Chart where is the Indicator running in your Metatrader Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete
Click here below to download MT5 Indicator: