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General TradingD
Disparity Index
The Disparity Index is a technical indicator that measures the percentage difference between the current closing price and a selected moving average. Positive values indicate the price is above the moving average (potentially overbought), while negative values indicate it is below (potentially oversold).
Example
“The Disparity Index reached +15% above the 50-day moving average, suggesting the stock was significantly overbought and due for a pullback.”