Custom Formula Collection

Steve Nison refers to the his Disparity Index "as a percentage display of the latest close to a chosen moving average". This can be defined in MetaStock using the formula:

( ( C - Mov( C ,X ,? ) ) / Mov( C ,X ,? ) ) * 100

** where X is the number of time periods and ? is the calculation type of the moving average.

For example:

( ( C - Mov( C ,13,E ) ) / Mov( C ,13 ,E ) ) * 100

** where X = 13 time periods and ? = Exponential moving average.

For interpretation on the Disparity Index refer to Steve Nison's book Beyond Candlesticks which is available from the Equis Direct catalogue.