From TradersList Editors

From TradersList Editors

Use this dynamic MetaTrader tool to identify market reversals and trends by analyzing overbought/oversold levels with price action.

Use this dynamic MetaTrader tool to identify market reversals and trends by analyzing overbought/oversold levels with price action.

MetaTrader Indicator

MetaTrader Indicator

Disparity Index Indicator: Identify Market Reversals Using Dynamic Overbought and Oversold Levels

Disparity Index Indicator: Identify Market Reversals Using Dynamic Overbought and Oversold Levels

MetaTrader interface showing a price chart with the Disparity Index indicator displayed in a bottom panel. The indicator consists of a histogram with blue and red bars that fluctuate between dynamic overbought and oversold lines to represent the percentage distance of price from its moving average.

by rone on MetaTrader

MetaTrader interface showing a price chart with the Disparity Index indicator displayed in a bottom panel. The indicator consists of a histogram with blue and red bars that fluctuate between dynamic overbought and oversold lines to represent the percentage distance of price from its moving average.

by rone on MetaTrader

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Indicator

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MetaTrader

MetaTrader

Price Action

Price Action

Disparity Index

Disparity Index

Disparity Index is a MetaTrader Indicator that dynamically defines overbought and oversold levels using average price changes and applying candlestick reversal models to identify market reversals and trends.

Disparity Index is a MetaTrader Indicator that dynamically defines overbought and oversold levels using average price changes and applying candlestick reversal models to identify market reversals and trends.

Get on MetaTrader

This indicator is available on MetaTrader charting platform. Signing up for a free account and downloading MetaTrader software is required.

Get on MetaTrader

This indicator is available on MetaTrader charting platform. Signing up for a free account and downloading MetaTrader software is required.

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Open Source

Listing has publically available source code that can be audited and modified as needed.

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Open Source

Listing has publically available source code that can be audited and modified as needed.

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Free Access

All features of this listing are fully free to use with no pricing tiers. Simply start using.

💸

Free Access

All features of this listing are fully free to use with no pricing tiers. Simply start using.

Published by rone on MetaTrader

Published by rone on MetaTrader

Measuring Price Distance from the Mean

The Disparity Index calculates how far the current price has moved from its moving average, expressed as a percentage. A high positive value means price is stretched well above the average - potentially overbought. A deep negative value means price is extended below - potentially oversold.

Dynamic Overbought and Oversold Levels

Unlike static thresholds, this indicator dynamically adjusts its overbought and oversold levels based on average price changes. This adaptive approach accounts for varying market conditions - what qualifies as "extreme" in a calm market differs from what counts as extreme during high volatility.

Measuring Price Distance from the Mean

The Disparity Index calculates how far the current price has moved from its moving average, expressed as a percentage. A high positive value means price is stretched well above the average - potentially overbought. A deep negative value means price is extended below - potentially oversold.

Dynamic Overbought and Oversold Levels

Unlike static thresholds, this indicator dynamically adjusts its overbought and oversold levels based on average price changes. This adaptive approach accounts for varying market conditions - what qualifies as "extreme" in a calm market differs from what counts as extreme during high volatility.

Candlestick Reversal Models

The indicator incorporates candlestick reversal patterns to enhance its signals. When the Disparity Index reaches an extreme and a reversal candlestick forms - such as a hammer at an oversold level or a shooting star at overbought - it generates a higher-confidence signal than either method alone.

Trend and Reversal Identification

In trending markets, the Disparity Index helps time pullback entries by identifying when price has reverted enough toward the average to offer value. In ranging markets, it signals mean-reversion opportunities when price becomes stretched to either extreme and is statistically due for a snap-back.

Candlestick Reversal Models

The indicator incorporates candlestick reversal patterns to enhance its signals. When the Disparity Index reaches an extreme and a reversal candlestick forms - such as a hammer at an oversold level or a shooting star at overbought - it generates a higher-confidence signal than either method alone.

Trend and Reversal Identification

In trending markets, the Disparity Index helps time pullback entries by identifying when price has reverted enough toward the average to offer value. In ranging markets, it signals mean-reversion opportunities when price becomes stretched to either extreme and is statistically due for a snap-back.

Detect extremes with ease

Detect extremes with ease

The Disparity Index calculates how far current price has moved from its moving average as a percentage. Dynamic overbought and oversold levels adjust based on average price changes, accounting for varying market conditions.

The Disparity Index calculates how far current price has moved from its moving average as a percentage. Dynamic overbought and oversold levels adjust based on average price changes, accounting for varying market conditions.

Flag Overbought and Oversold Automatically

Unlike static thresholds, levels adjust dynamically. What qualifies as extreme in a calm market differs from what counts during high volatility.

Combine with Candlestick Patterns

When the Disparity Index reaches an extreme and a reversal candlestick forms, it generates higher-confidence signals than either method alone.

Identify Trending vs Ranging Conditions

In trending markets, time pullback entries when price reverts toward average. In ranging markets, signal mean-reversion opportunities at extremes.

Common Questions About Disparity Index Trading

Common Questions About Disparity Index Trading

The Disparity Index measures price extension from its mean, helping identify overbought and oversold conditions. Here are common questions answered.

The Disparity Index measures price extension from its mean, helping identify overbought and oversold conditions. Here are common questions answered.

How is the Disparity Index calculated?

The Disparity Index calculates the percentage difference between current price and a moving average. If price is 5% above the moving average, the disparity is +5%. The indicator then defines overbought and oversold thresholds based on recent disparity ranges.

Why are the overbought and oversold levels dynamic rather than fixed?

Fixed thresholds fail in changing volatility conditions. What qualifies as extreme during a calm period differs from high volatility environments. Dynamic levels adapt to recent price behavior, providing context-appropriate signals regardless of market conditions.

How do candlestick reversal patterns enhance the signals?

A disparity extreme alone indicates stretched price but not timing. Adding candlestick reversal patterns like hammers or shooting stars provides the trigger. When an extreme disparity coincides with a reversal candle, the probability of a snapback improves significantly.

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Web sentiment

Web sentiment

Users on the web feel positive about Disparity Index, appreciating MQL5's speed, efficiency, and advanced features, with minor criticisms on script quality.

Users on the web feel positive about Disparity Index, appreciating MQL5's speed, efficiency, and advanced features, with minor criticisms on script quality.

Source: Online Discussion

Source: Online Discussion

Source: Online Discussion

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TradersList Reviews (3)

TradersList Reviews (3)

TradersList Community has given this listing three stars, indicating decent trust and value for traders' toolkit. Make sure you understand functionality before using.

TradersList Community has given this listing three stars, indicating decent trust and value for traders' toolkit. Make sure you understand functionality before using.

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Source: TradersList Reviews

Source: TradersList Reviews

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MetaTrader Indicator

Squeeze - on chart

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Squeeze - on chart is a MetaTrader indicator that color-codes candles or bars with potential on-going long or short squeezes, based on standard deviations.

MetaTrader chart displaying Price Heatmap indicator with color-coded price histograms and purple dotted peak lines showing time-at-price duration and market activity zones

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by fxborg

Free

MetaTrader Indicator

Price Heatmap

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Price Heatmap is a free MetaTrader indicator that visualizes price movements using heatmap style visuals to convey where, when and how long an asset spent time at various price levels. In essence, this is a rolling, dynamic market profile.

MetaTrader price chart displaying highlighted price action patterns with text labels identifying formations such as hammers, doji and evening stars

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by scriptor

Free

MetaTrader Indicator

Patterns

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Patterns is a MetaTrader indicator that automatically identifies thirty popular candlestick patterns on price charts. With 38 adjustable settings, it allows customization of pattern displaying, tooltips and detection criteria.

MetaTrader chart featuring the Tarzan Price Action Indicator with price bars and color-coded RSI lines. The central line appears green for upward signals and red for downward signals. Sky blue and orange zones define the channels while pale gray sections highlight overbought or oversold conditions.

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by scriptor

Free

MetaTrader Indicator

Tarzan

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Tarzan is a MetaTrader Indicator that visualizes RSI changes that align with price action, using simple color-coded bars and signal arrows. Multiple customziation options, like smoothed RSI and adjustable channels.

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by scriptor

Free

MetaTrader Indicator

Extreme_TMA_line_indicator

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Extreme_TMA_line_indicator is a MetaTrader Indicator that calculates price bands to identify extremes using TMA and ATR, defined by an user specified multiplier. This indicator also draws a central line that changes color based on trend direction.

MetaTrader price chart displaying the Market_Sessions indicator with color-coded rectangular zones highlighting Sydney Tokyo London and New York trading sessions

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by scriptor

Free

MetaTrader Indicator

Market_Sessions

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Market_Sessions is a MetaTrader Indicator that displays New York, London, Tokyo and Sydney trading sessions on price charts. This indicator offers customizable settings for session times, colors, labels and lines. Usable on 1 hour timeframe or lower.

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by godzilla

Free

MetaTrader Indicator

KI_signals

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KI_signals is a MetaTrader indicator that generates signals using the XMACD histogram by detecting changes in histogram and signal line directions and their intersections, displayed as colored candlesticks.

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Disclaimer

Our goal is to achieve greater transparency, guidance and safety in trading and investing by providing means to discover, research and discuss trading/investing related sites/services.

Content provided on this site is not financial advice, meant for educational purposes only. TradersList does not endorse or guarantee any result for listed sites/services. Do your own research.

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Disclaimer

Our goal is to achieve greater transparency, guidance and safety in trading and investing by providing means to discover, research and discuss trading/investing related sites/services.

Content provided on this site is not financial advice, meant for educational purposes only. TradersList does not endorse or guarantee any result for listed sites/services. Do your own research.

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