Advanced trading software: technical analysis and neural networks

In his article “Making The Most Of A Trend With The Disparity Index”, Dan Valcu has analyzed volatile markets where the formation of peaks and troughs is difficult to forecast. The disparity index is an indicator that should help to squeeze the best out of a trend whether you are trading equities, futures, or Forex.

Using Function Builder, one needs to create the Disparity function:

Disparity function:

function (Price:Numeric=Close, N:Numeric=10, 
Method:Numeric = E):Numeric;
Var
 Disparity:=0;
End_var

Disparity:= 100*(Price -  MOV(Price,N,Method))/Price;

return Disparity;

Also, one needs to create the Disparity indicator using Tradecision’s Indicator Builder:

Disparity indicator:

input
 Price:"Enter the price:", Close;
 Length:"Enter the Length:", 20;
 Method:"Enter the Moving Average Method:", E;
end_input

return Disparity(Price,Length,Method);

In NeatScan market scanner, one needs to create the DIX scan with the following code:

return true;

Column DIX(20):

var
 nper1 := 20;
 dix20:= 0;
End_var

dix20:=100*(C-EMA(C,nper1))/C;

return dix20;

Column DIX(50):

var
 nper1 := 50;
 dix50:= 0;
End_var

dix50:=100*(C-EMA(C,nper1))/C;

return dix50;

Column DIX(200):

var
 nper1 := 200;
 dix200:= 0;
End_var

dix200:=100*(C-EMA(C,nper1))/C;

return dix200;