D Disparity Dots – D Smart

Creator : Definedge

The disparity between the moving average and the price is high when there is a large distance between them. A high disparity indicates a strong momentum, as well as temporary exhaustion.

D Disparity Dot – D Smart indicator measures the distance between the D Smart and the price. Whether the distance is high or low is subjective. This indicator calculates the same by using the high-low period and a volatility multiplier. Both of these can be defined by the user.

When the disparity is high, the red dot appears on the indicator. When the disparity is high in a downtrend, the green dot appears on the indicator.

This information can be useful when combined with price action. Overbought (red dot) and oversold (green dot) conditions are available for scanning in the indicator system builder.

The indicator is explained in detail in this video.

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

The indicator is applicable to all types of charting. It is calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin-Ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.

This indicator is available in the System Builder on RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.