Steve Nison refers to his Disparity Index as “a percentage display of the latest close to a chosen moving average.” This can be defined mathematically using the formula:
[Mov(C,X,MA) ] * 100
Where X is the number of time periods and MA is the calculation type of the moving average. For more in depth interpretation of the Disparity Index refer to Steve Nison’s book “Beyond Candlesticks”, Chapter 5
Looks symilar to Force index provided with Meta Trader.
30.05.2007 07:02 walsz