Disparity Index - indicator for confirming candlestick reversal patterns
Disparity Index – indicator for MetaTrader 5 terminalwhich is actually an oscillator, but it is focused on working with candlestick reversal patterns.
According to the author's assertions, the use of reversal patterns should be done very carefully. For this purpose, it is important that the market is in the oversold / overbought zone of the market. In the case of by the Disparity Index - are the blue and red bars of the histogram crossing the dynamic oversaturation levels.
These levels are calculated as the average value of the price change on each bar for the specified period multiplied by the coefficient, for overbought and the inverse for oversold.
According to ForTrader.org experts, using this indicator as an accompanying indicator for trading on candlestick patterns will only contribute to productivity. However, the behavior of the instrument should be taken into account, as important signals can be filtered out.
