Disparity Index

dix

Function Name: dix

Tags: Moving Averages

Category: Trend

The Disparity Index (DIX) is a technical indicator that measures the relative position of the most recent closing price to a selected moving average and reports the value as a percentage. A value greater than zero suggests that the asset is gaining upward momentum, while a value less than zero can be interpreted as a sign that selling pressure is increasing.

Extreme values of this indicator can be a very useful tool for contrarian investors to foretell periods of exhaustion. Once the price is excessively pushed in one direction, there are very few investors to take the other side of the transaction when the participants wish to close their position, ultimately leading to a price reversal. Similar to the ROC indicator, important signals are generated when the indicator crosses over the zero line because it is an early signal that momentum is building.

This indicator uses three DIX with default periods 10, 50, and 200. The corresponding trigger lines are set -2, 3, and 5.

http://www.investopedia.com/terms/d/disparityindex.asp

 

Parameters

period1

 

Default Value: 10  |  Minimum: 2  |  Maximum: 99999

 

Type: Numeric

period2

 

Default Value: 50  |  Minimum: 2  |  Maximum: 99999

 

Type: Numeric

period3

 

Default Value: 200  |  Minimum: 2  |  Maximum: 99999

 

Type: Numeric

trigg1

 

Default Value: -2  |  Minimum: -100  |  Maximum: 100

 

Type: Numeric

trigg2

 

Default Value: 3  |  Minimum: -100  |  Maximum: 100

 

Type: Numeric

trigg3

 

Default Value: 5  |  Minimum: -100  |  Maximum: 100

 

Type: Numeric