discussion on usage and effectivity of disparity index indicator in forex trading

Discussion on usage and effectivity of Disparity Index Indicator in forex trading

Disparity Index Indicator aik technical momentum indicator hay, is ko Steve Nison nay introduce kia tha, disparity index ziada kisi bhi pair ya commodity ki recent closing prices ki relative positions ko measure karta hai or result value percentage ma show karta hay, disparity index indicator boht sari types kay signals ko generate karta hay, jab yeh indicator zero line say above cross karta hay to yeh trader ko buy ki trade open karnay ka signal daita hay, Working techniques of disparity index indicator: Jab disparity index zero value show kar day to iska matlab hota hay kay kisi pair ya commodity ki price N period moving average kay equal hay, Agr index zero value say kam number show kary to kisi pair ya commodity ki price n period moving average say less hay, yeh value percentage ko show karti hay, jo moving average kay relative kisi pair ki current closing price ki percentage value ko measure karta ha, simple alfaz main hum yeh keh saktay hain kay yeh indicator market ki current prices ko particular time period ki prices kay moving average ko compare karta ha, jis ka result positive honay ki surat main pairs ki prices increase honay ka signal milta hay aur negative result pairs ki prices ma fall ko show karta hay, Procedure for calculation of disparity index indicator: Indicator specific moving average ki deviation percentage ki term main calculate karta hay, jaisay agr kisi pair ki price 50$ ha aur us pair ka 14 days moving average 5 ha, to iska disparity index 50-5=45% ho jay ga, jab Disparity index zero hota ha to iska matlab yeh hay kay current price moving average kay equal ha, jab yeh value zero say greater hogi to iska matlab yeh ho ga kay current price bhi moving average say greater hay aur low value ki surat main current price moving average say low hoti ha, iska formula yeh banta hay, Disparity Index = (current market price - n periods moving average) / (n periods moving average x 100) Indication of overbought and oversold situation: yeh indicator aik simple indicator hay laikin ye traders ko technical anaylisis ma useful informations provide karta hay, indicator ki positive percentage rising prices ko show karti ha aur negative percentage falling prices ki indication daiti hay, disparity index market ki over bought aur over sold states ko bhi indicate karta hay, over bought state us surat main show karta hay jab disparity index upper band kay upper ho ya is say above ho, isi tarah over sold states is surat main show karta hai jab disparity index lower band kay uper ya is say below ho, upper aur lower bands ko boht carefully determined kiya jana chaiay aur is kay liay index ki sensitivity ko mind main rakhna chaiay