Disparity Index
(redirected from Disparity Indexes)Disparity Index
In technical analysis, an indicator that measures a security's current price to its most recent closing price and expresses the difference as a percentage. A positive disparity index measure indicates that pressure to buy the security is increasing while a negative measure shows the opposite. Extreme values in either direction may indicate that a price correction is about to occur. Technical analysts use the disparity index to measure momentum.
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