Ultra Disparity Index

Gain insights into price movements across multiple timeframes with the Ultra Disparity Index. This indicator highlights overbought/oversold levels based on price disparities from moving averages.

Introduction
The Ultra Disparity Index is designed for traders who seek a deeper understanding of price movements and trends across various timeframes. By analyzing the disparity between the current price and its moving averages, the indicator helps identify overbought and oversold conditions.

Detailed Description
The indicator works by calculating the percentage difference between the current price and its moving averages over four user-defined lengths. It operates on multiple timeframes monthly, weekly, daily, 4-hour, and 1-hour giving traders a comprehensive view of market dynamics.

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1. Disparity Calculation

   The indicator computes how far the current price is from moving averages to reveal the degree of disparity.

   
   
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2. Overbought/Oversold Zones

   By normalizing disparities into percentages relative to the overbought/oversold range, the indicator represents overbought (100%) and oversold (-100%).

   
   
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3. Timeframe Flexibility

   The user can visualize data from monthly to hourly intervals, ensuring adaptability to different trading strategies.

   
   
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4. Customizable Inputs

   Users can configure moving average lengths and toggle visibility for specific timeframes and levels.

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Summary
The indicator uses simple moving averages (SMAs) as a benchmark for calculating disparity. This disparity is then analyzed using statistical tools, such as standard deviation, to derive meaningful levels. Finally, the results are visualized in a table, providing traders with an easy-to-read summary of disparity values and their respective normalized percentages.