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Disparity Index Forex Indicator

    The Disparity Index Forex indicator for MetaTrader 4 is a technical momentum that links market price to a time-specific moving average of the prices in the market.

    Traders tend to use the disparity index as a tool to spot signals of trend strength and the likelihood of an impending exhaustion.

    Other traders and analysts deploy the Disparity Index as a tool for defining oversold and overbought regions for a particular asset.

    An asset is said to be overbought when the index yields a value that is greater than or equal to the upper bound level, and it is said to be oversold when the index returns a value that is lower than the lower bound level.

    Free Download

    Download the “Disparity_Index.ex4” MT4 indicator

    Example Chart


    The Disparity Index indicator is based on the correlation between a current trading price and its most recent closing price.

    Just like other momentum indicators, the Disparity_Index indicator is most suited when used along with other tools when a trader is trying to spot possible reversals or confirm a trend.

    The price of a currency pair may spike or drop quickly within minutes, if not seconds.

    The Disparity_Index indicator is designed to gauge just what is tagged too severe of a spike or drop, offering simplicity in a condition that might otherwise be perceived as random.

    This trading indicator assumes that prices are sensitive to obsessive sessions of buying or selling, even within a trend.

    The Disparity_Index indicator can be used to sort for continuation pattern during short term or a total reversal in trend in the long term.


    Download the “Disparity_Index.ex4” MT4 indicator

    MT4 Indicator Characteristics

    Currency pairs: Any

    Platform: Metatrader 4

    Type: chart window indicator

    Customization options: Variable (DispPeriod), Colors, width & Style.

    Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month

    Type: momentum oscillator

    How to install the Disparity Index custom indicator in Metatrader 4?

    • Download the Disparity Index indicator to your computer.
    • Open your Metatrader 4 platform.
    • Open the data folder from the top menu.
    • Open the MQL4 folder.
    • Open the indicators folder.
    • Paste the indicator file in this folder.
    • Restart the trading platform.
    • Open any trading chart.
    • Attach the indicator to the chart.