Most traders try to trade mean reversion using a simple moving average like the 20 SMA, but often fail because they miss one crucial filter: the Disparity Index.

In this powerful tutorial, Bharat Jhunjhunwala uncovers how to combine the 20-period Simple Moving Average with the Disparity Index — a rare, underutilized indicator that dramatically improves win rates by filtering out false signals.

This isn’t your usual mean reversion strategy. Instead of blindly buying every dip or selling every rally, this method uses the Disparity Index to measure how far price has stretched from the moving average, ensuring entries are taken only when probability is in your favor.

📌 What You’ll Learn in This Video:
✔️ The logic behind mean reversion trading using the 20 SMA
✔️ How the Disparity Index works and why pros use it quietly
✔️ Identifying true reversion trades vs. failed traps
✔️ How to calculate and plot the Disparity Index for any stock, index, or crypto
✔️ Step-by-step setup: 20 SMA + Disparity Index filter
✔️ Finding the best entry, stop-loss, and exit rules
✔️ Using RSI or candlestick price action to confirm reversals
✔️ Live chart examples on Nifty, Bank Nifty, Silver, BTC, and stocks

🔍 Why This Setup Works in 2025 Markets:
→ Markets often overextend around the 20 SMA, but most pullbacks fail
→ The Disparity Index shows when price is stretched too far = high-probability setup
→ Helps avoid whipsaws during sideways markets
→ Perfect for swing and positional traders who want consistency in mean reversion
→ Works across equities, indices, commodities, and crypto

This is one of those setups few talk about because it actually works when mastered.

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