Sibbet Demand Index Divergence Indicator for MT4 – Free – [TFlab] – MetaTrader 4 Resource

The Sibbet Demand Index Divergence Indicator is an analytical tool used to identify divergences between price movements and the strength of hidden demand in the market.

This trading tool evaluates the consistency between price direction and the actual behavior of buyers or sellers.

When prices are in an uptrend but demand support is weak, the likelihood of a trend reversal increases. Conversely, falling prices accompanied by signs of rising demand may signal a potential upward pivot point reversal in the market.

Sibbet Demand Index Divergence Indicator Table

The table below lists the main characteristics of the Sibbet Demand Index Divergence indicator:

Sibbet Demand Index Differences at a Glance

The Sibbet Demand Index Divergence Indicator on MetaTrader 4 draws a divergence line between the price chart and the demand index to reveal mismatches between price movements and true market strength.

This indicator uses color-coded histograms to visually highlight changes in demand and buying/selling pressure.

bullish trend indicator

The price chart below shows the GBP/USD currency pair on a 5-minute time frame. In a bullish scenario, a positive divergence occurs when the price makes lower lows while the demand indicator shows higher lows.

This mismatch points to increasing buying pressure behind the scenes, although the price chart remains bearish.

This divergence usually signals seller exhaustion and buyers creeping in, often an early warning of a potential uptrend reversal.

Bearish trend indicator

The chart below shows the BNB Cryptocurrency Index on the 15-minute time frame.

In a bearish divergence, the price forms higher highs while indicators form lower highs, indicating declining demand and weakening buyers.

This divergence increases the likelihood of a bearish reversal. To confirm an entry, traders often rely on trendline breakouts or bearish candlestick patterns.

Sibbet Demand Index Divergence Settings

The image below shows the settings panel for the Sibbet Demand Index Divergence Oscillator:

• Length : Index calculation period
• Phase : Signal phase or offset
• Double : Numeric value with decimal precision
• Signal Length : Calculation period of the signal line
• Signal Phase : specific phase of the signal line
• Signal Double : Signal line double calculation
• Show Intermediate : Show intermediate values
• Divergence Visible : Show differences
• Visible Value Differences : Display differences based on values
• Visible Divergence on Charts : Display divergences visually on charts
• Divergence Bullish Color : Bullish Divergence Color
• Divergence Bearish Color : Bearish Divergence Color
• Discrepancy unique ID : Discrepancy unique ID
• Histogram on Slope : Histogram display based on slope
• Interpolate : enables discrete data interpolation
• Alerts On : Enable alerts
• Alerts On Slope : Enable slope change alerts
• Alerts On Current : Send alerts on the current candle
• Alerts Message : Enable SMS reminders
• Alerts Sound : Enable sound alerts
• Alerts Email : Send alerts via email
• Arrows Visible : Show arrows
• Arrows On Slope : Display arrows when the slope changes
• Arrows On Current : Draw arrows immediately on the current candle
• Arrows Displacement : Arrows deviate from their original position
• Arrows Up Color : Up arrow color
• Arrows Dn Color : Down arrow color
• Arrows Up Code : Arrow code in the upward direction
• Arrows Dn Code : Downward arrow code
• Level OB : Overbought reference level
• Level OS : Oversold reference level
• NOTIFICATION : push notification
• MESSAGE TIMEOUT : interval between alerts
• MESSAGE SUBJECT : The subject of the alert message

Conclusion

The Sibbet Demand Index Divergence Indicator for MetaTrader 4 detects bullish and bearish divergences by comparing price movements with demand strength.

Bullish divergence indicates rising demand during a downtrend and signals a potential upside reversal.

This Trading tool , Bearish divergence reflects declining demand during an uptrend and signals a potential reversal to the downtrend.