Indicators: Demand Index


Demand Index:

The Demand Index combines price and volume in such a way that it is often a leading indicator of price change.

Demand Index is developed by James Sibbet. When calculating this index the prices and volume are used. This index is considered to be a leading one. In this version the index is vary from +100 to -100. In other aspects the index calculation is precisely repeats the author's version.

There are six rules for the Demand Index:

  1. Divergence between the Index and a price trend supports the idea that the price is "weak";
  2. In case the market starts increasing its activity, new price highs are usually preceded by Demand Index maximum peaks (the Index works as a forward-looking indicator in this case);
  3. The case when a price reaches new highs but the Index value is lower than its previous top, is usually accompanied by "significant" reversals on the top (the Index works as an accompanying indicator in this case);
  4. The case when the Index crosses the zero level, shows the change of a trend (the Index works as a lagging indicator in this case);
  5. The case when the Index remains near the zero level for some time, shows that the current price move is weak and it will not last long;
  6. Wide long-term divergence between the prices and the Index values implies big tops and bottoms.

Author: Nikolay Kositsin

Demand Index indicator


The Demand Index have a bug.


To see the BUG you must plot only the Demand Index over a curenncy (on a high time frame or in weekend when price values don't change)..  Note the last value of de Demand Index (for the last bar).

Now plot another indigator on the same chart. You will see that the last value has changed.

Why this happens ???!!!?!?!!?

I looked in the indicator code but I could not figure out what the problem is.

 Can someone help please???


Similar to relative equilibrium index. One of the top 3 free oscillators. Thank you very much.