Sibbet Demand Index Divergence Indicator MT4
Sibbet Demand Index Divergence Indicator for MT4
The Sibbet Demand Index Divergence Indicator is a market analysis tool designed to uncover discrepancies between price action and underlying demand dynamics. This MT4 indicator measures how closely price trends correspond with the actual intentions of buyers or sellers.
When prices are trending upward but demand momentum fades, a potential reversal becomes more probable. On the flip side, declining prices alongside a surge in demand can often precede a bullish turning point in the market.
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Sibbet Demand Index Divergence Indicator Table
Below is an overview of the core attributes of the Sibbet Demand Index Divergence Indicator:
Category | Oscillator – Trading Tool – Momentum |
Platform | MetaTrader 4 |
Skill Level | Intermediate |
Indicator Type | Continuation – Reversal |
Timeframe | Multi Timeframe |
Trading Style | Intraday Trading |
Trading Market | All Financial Markets |
Sibbet Demand Index Divergence at a Glance
Within MetaTrader 4, the Sibbet Demand Index Divergence Indicator draws divergence patterns between the price and demand index, revealing subtle inconsistencies between chart movements and the actual strength of the market. The indicator uses color-coded histogram bars to represent shifts in buying and selling force visually.
Indicator in Bullish Trend
The following image presents the GBP/USD currency pair in a 5-minute timeframe. In bullish divergence, the price registers a lower low, while the demand index reflects a higher low. This suggests that, despite bearish-looking price action, there is growing buying strength beneath the surface.
Such divergence frequently indicates that sellers are losing momentum and that buyers are beginning to take control—often preceding an upward trend shift.
Indicator in Bearish Trend
Displayed below is the BNB crypto index chart on a 15-minute timeframe. Bearish divergence is identified when the price forms a higher high while the demand indicator generates a lower high, highlighting diminishing buyer strength. This scenario raises the probability of a downward reversal.
Traders typically wait for confirmation through trendline breaks or bearish candlestick formations before making entries.
Sibbet Demand Index Divergence Settings
The configuration panel of the Sibbet Demand Index Divergence Oscillator is shown in the image and includes the following adjustable parameters:
- Length: Period used for demand calculation
- Phase: Defines signal phase offset
- Double: Activates dual calculation mode
- Signal Length: Timeframe for signal line
- Signal Phase: Phase setting for signal line
- Signal Double: Enables double logic for the signal
- Show Intermediate: Toggle intermediate value display
- Divergence Visible: Turns divergence visibility on/off
- Divergence On Value Visible: Shows value-based divergences
- Divergence On Chart Visible: Highlights divergences directly on the chart
- Divergence Bullish Color: Color setting for bullish divergence
- Divergence Bearish Color: Color for bearish divergence lines
- Divergence Unique ID: Unique identifier for divergence tracking
- Histogram on Slope: Enables slope-based histogram display
- Interpolate: Smooths discrete data points
- Alerts On: Enables alert notifications
- Alerts On Slope: Notifies slope-based signal changes
- Alerts On Current: Sends alerts for current candle updates
- Alerts Message: Enables alert messages
- Alerts Sound: Activates sound alerts
- Alerts Email: Sends alerts via email
- Arrows Visible: Enables arrow display on the chart
- Arrows On Slope: Arrows appear when slope changes
- Arrows On Current: Shows arrows on the most recent candle
- Arrows Displacement: Adjusts arrow position offset
- Arrows Up Color: Up arrow color customization
- Arrows Dn Color: Down arrow color setting
- Arrows Up Code: Code used for upward arrows
- Arrows Dn Code: Code assigned for downward arrows
- Level OB: Overbought level setting
- Level OS: Oversold threshold
- NOTIFICATION: Enables push notification feature
- MESSAGE TIMEOUT: Interval between message alerts
- MESSAGE SUBJECT: Customizable subject line for alerts
Conclusion
The Sibbet Demand Index Divergence Indicator for MT4 is a reliable tool for spotting both bullish and bearish divergences by comparing price moves to hidden demand forces. Bullish divergence implies accumulation during declining prices, suggesting a likely upward shift.
Conversely, bearish divergence points to diminishing demand during price advances, often foretelling a downward market correction.