The Sibbet Demand Index Divergence Indicator in MT4 is a technical analysis tool designed to uncover divergences between price action and hidden demand strength in financial markets.
It evaluates whether the visible trend in price is truly supported by buyer or seller activity. When prices rise but demand is weak, the probability of a trend reversal increases. Conversely, when prices fall while demand strengthens, it often signals a potential bullish pivot point in the market.
In MetaTrader 4, the indicator plots divergence lines between the price chart and the demand index to reveal mismatches between market price and true strength. It uses color-coded histograms to highlight buy/sell pressure, making hidden demand shifts visible at a glance.
On the GBP/USD 5-minute chart, a bullish divergence forms when price makes a lower low while the demand index creates a higher low.
This signals rising buying pressure behind the scenes despite bearish-looking price action. Such conditions often mark seller exhaustion and hint at the start of a potential upward reversal.
On the BNB/USDT 15-minute chart, a bearish divergence appears when price forms a higher high while the demand index shows a lower high.
This mismatch signals weakening demand and fading buyer strength. It often precedes a bearish reversal, with confirmation provided by trendline breaks or bearish candlestick patterns.
This flexibility allows traders to adjust the indicator for different trading instruments and strategies.
The Sibbet Demand Index Divergence Indicator for MT4 is a powerful divergence detection tool that compares price movement with demand strength.
By exposing these hidden mismatches, it helps traders anticipate market turning points with greater precision.
It evaluates whether the visible trend in price is truly supported by buyer or seller activity. When prices rise but demand is weak, the probability of a trend reversal increases. Conversely, when prices fall while demand strengthens, it often signals a potential bullish pivot point in the market.
Indicator Specifications
- Categories: Oscillators, Trading Assist, Momentum (MT4)
- Platform: MetaTrader 4
- Skill Level: Intermediate
- Type: Reversal Indicator
- Timeframe: Multi-Timeframe
- Trading Style: Intraday
- Markets: Forex, Crypto, Stocks, Commodities, Indices
- Download: https://cdn.tradingfinder.com/file/495034/sibbet-demand-index-divergence-mt4-by-tflab.zip
How It Works
In MetaTrader 4, the indicator plots divergence lines between the price chart and the demand index to reveal mismatches between market price and true strength. It uses color-coded histograms to highlight buy/sell pressure, making hidden demand shifts visible at a glance.
Bullish Divergence Example
On the GBP/USD 5-minute chart, a bullish divergence forms when price makes a lower low while the demand index creates a higher low.
This signals rising buying pressure behind the scenes despite bearish-looking price action. Such conditions often mark seller exhaustion and hint at the start of a potential upward reversal.
Bearish Divergence Example
On the BNB/USDT 15-minute chart, a bearish divergence appears when price forms a higher high while the demand index shows a lower high.
This mismatch signals weakening demand and fading buyer strength. It often precedes a bearish reversal, with confirmation provided by trendline breaks or bearish candlestick patterns.
⚙️ Settings Overview
- Core Inputs: Length, Phase, Double
- Signal Line: Length, Phase, Double
- Divergence Display: On chart, on values, bullish/bearish colors, unique IDs
- Visuals: Histogram slope, arrows for entry points, overbought/oversold levels
- Alerts: On slope changes, current candle, text, sound, email, push notifications
- Customization: Arrow displacement, colors, codes, interpolation, history depth
This flexibility allows traders to adjust the indicator for different trading instruments and strategies.
✅ Conclusion
The Sibbet Demand Index Divergence Indicator for MT4 is a powerful divergence detection tool that compares price movement with demand strength.
- Bullish divergence indicates rising demand during a downtrend → a signal for potential upward reversal.
- Bearish divergence shows weakening demand during an uptrend → a warning of likely downside reversal.
By exposing these hidden mismatches, it helps traders anticipate market turning points with greater precision.
