Disparity Index is a technical indicator developed in order to measure the relative position of recent closing price to a moving average and show the result as a percentage.
Disparity index is a very useful tool when it shows extreme values, because it than prognosticates that market is in period of tiredness.
In general, all positive values indicates that the asset is advancing due to strong buying climate, while negative values indicate that the asset is declining and selling pressure is strong.
