The Demand Index joins the demand ad price values. The indicator is among the reputed indicators which give the timely and correct changes in trends. The Demand Index was invented by James Sibbe. Sibbet,s demand index filter indicator is an upgraded version which is designed to upgrade the automated color histogram. In advance version more colors are given in the histogram. It is now easy to understand and interpret with more colors. The figure given below explains this point;
Sibbet’s Demand Index filter indicator is built on following rules;
a. Calculation of divergence between demand index and predicted weak prices.
b. Analyzes that when the demand index will touch new extreme prices.
c. What are the lower demand index peak as normally they are coincident to important top prices.
d. Identification of change in trend once the demand level touches zero.
e. Long term divergence between low and high demand index.
The figure given below explains the aforementioned rules.
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