Sibbet Demand Index Divergence Indicator for MT5 – Free - [TFlab]

The Sibbet Demand Index Divergence indicator is an advanced technical analysis tool used to detect divergences between price movements and the hidden demand strength in the market.

By comparing the direction of price trends with the actual behavior of buyers or sellers, this indicator identifies potential trend reversal signals within the oscillator.

Sibbet Demand Index Divergence Indicator Table

Key specifications of the Sibbet Demand Index Divergence Oscillator are listed below:

Sibbet Demand Index Divergence at a Glance

The Sibbet Demand Index Divergence Indicator on the MetaTrader 5 platform plots divergence lines between the price chart and demand index to highlight discrepancies between price movement and real market force.

This trading tool uses color-coded histograms to graphically display changes in demand intensity and buying/selling pressure within the oscillator.

Indicator in Bullish Trend

The chart below shows the EUR/JPY currency pair on a 1-hour timeframe. In bullish divergence, the price forms a lower low, while the demand index shows a higher low.

This discrepancy signals increasing hidden demand in the market. In such scenarios, selling pressure decreases, and the likelihood of buyer entry increases.

Indicator in Bearish Trend

The following chart displays the global gold spot price (XAU/USD) on a 1-hour timeframe. 

In bearish divergence, rising prices accompanied by a declining oscillator high indicate weakening demand and buyer exhaustion. This inconsistency typically signals a potential market reversal to the downside.

Sibbet Demand Index Divergence Settings

Below is the settings panel of the Sibbet Demand Index Divergence indicator:

• Length: Calculation period for the index
• Phase: Signal phase or shift
• Double: Numeric value with decimal precision
• Signal Length: Calculation period for the signal line
• Signal Phase: Phase of the signal line
• Signal Double: Dual signal line calculations
• Show Intermediate: Display intermediate values
• Divergence Visible: Display divergences
• Divergence On Value Visible: Display divergences based on value
• Divergence On Chart Visible: Visually show divergences on the chart
• Divergence Bullish Color: Bullish divergence color
• Divergence Bearish Color: Bearish divergence color
• Divergence Unique ID: Unique identifier for divergence
• Histogram on Slope: Display a histogram based on slope
• Interpolate: Enable discrete data interpolation
• Alerts On: Enable alerts
• Alerts On Slope: Enable alerts on slope change
• Alerts On Current: Alert for the current candle
• Alerts Message: Enable message alert
• Alerts Sound: Enable sound alert
• Alerts Email: Send alert via email
• Arrows Visible: Show arrows
• Arrows On Slope: Show arrows on slope change
• Arrows On Current: Draw an arrow on the current candle without delay
• Arrows Displacement: Arrow position displacement from the original point
• Arrows Up Color: Upward arrow color
• Arrows Dn Color: Downward arrow color
• Arrows Up Code: Code for upward arrow
• Arrows Dn Code: Code for downward arrow
• Level OB: Overbought reference level
• Level OS: Oversold reference level
• NOTIFICATION: Enable push notifications
• MESSAGE TIMEOUT: Alert interval time
• MESSAGE SUBJECT: Alert message subject

Conclusion

The Sibbet Demand Index Divergence Indicator in MetaTrader 5 simultaneously analyzes price direction and demand strength to detect bullish and bearish divergences.

Bullish divergence often signals increased demand during a downtrend, indicating a potential upward reversal.

Bearish divergence typically reflects decreasing demand during an uptrend, hinting at a downward reversal.