What Is Disparity?
Disparity = Divergence
View a video here
The study constantly monitors the most recent disparities in 4 categories. If present, a horizontal bar is drawn. Red horizontal bar for bearish over the high pivots. Blue horizontal bar for bullish under the low pivots. Text notification is also printed in the lower-left corner of the window. The swing high and low pivot points are identified by a "P"..
If disparity is found, you will get text notification in the lower left of the screen.
The S: number is the strength, ie, the number out of 4 signals, that formed.
This script updates on the close of each bar and will print ONLY if the conditions are met.
To learn more about divergence in trading, please do an internet search on this topic and you fill find plenty.
The Unique Measurements - Real Time vs Historical
This script is meant to give you 'warning's of the conditions being met on a particular bar. Sometimes what prints in 'Real-Time', is different than when you refresh the chart or script and look back, 'Historically'.
In real-time the software can only read the front side of a possible forming pivot. It cannot, of course, know in advance if a particular bar will indeed form a pivot point, ie, know the back side.
Therefore if a particular bar fits the bill for being a pivot bar on the front side AND satisfies the conditions for the indicator, it WILL print. If price continues to advance in the same direction and the next bar also fits the bill, another printing will occur. This is NOT a mistake. You may get several printings, until price either begins a retreat or the indicator conditions are no longer met, or an actual pivot has finally occurred.
Most often in these circumstances, the Primary Confirmation will not happen either. You can choose to view only the most recent printing in 'Edit Studies...' by selecting false to 'Show Past Signals'.
Primary and Secondary Confirmation
Primary Confirmation, is the breach of the "P" bar that gave the disparity. Example: This would be the price rising above the Swing Low bar high.
The Primary Confirmation price is printed in the text area, lower left of the screen.
As this is a primary confirmation, you should then look to your charts for Secondary Confirmations of Gann, Fibonacci and whatever else you are using.
Disparity Edit Studies Options
Show Past Signals
Select true to show Disparity signals for past pivot points and false to show only the most current signal.
Symbol Offset adjust
Change this value to move away or bring closer the Disparity signals to the price bars.
Show Swing Line
Select true or false to display the swing line.
Example: 6B Futures - Double Confirmation with EWP - Bullish
