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NEW PAGE CREATED WITH MORE EXAMPLES OF DEMAND INDEX CLICK HERE TO VIEW

 

  Demand Index can be used as a leading indicator

  • The Demand Index indicator acts as a leading indicator in this example, showing a large drop from +30 to -2 in just a couple of days, See if you can guess what happened the next day?  
  • Take a good look at the chart and then scroll down. Demand index is available for Tradestation, MultiCharts ( see below ) and NinjaTrader 7
Description of Demand Index Demand Index uses

 

The Demand Index, developed by James Sibbet,  combines price and volume in such a way that it is often a leading indicator of price change.

The Demand Index calculations are too complex, however, for this text. The calculations require 21-column accounting paper to calculate manually.

  • There are six "rules" to the Demand Index:

  • A divergence between the Demand Index and the price trend suggests an approaching weakness in price.

  • One more rally to new highs usually follows an extreme peak in the Demand Index (the Index is performing as a leading indicator).

  • Higher prices with a lower Demand Index peak usually coincides with an important top (the Index is performing as a coincidental indicator).

  • The Demand Index penetrates the level of zero indicating a change in trend (the Index is performing as a lagging indicator).

  • When the Demand Index stays near the level of zero for any period of time, a weak price movement that will not last long is indicated.

  • A large long-term divergence between prices and the Demand Index indicates a major top or bottom.

 

 

 

The Demand Index indicator is much more useful than most traders realise and many excellent systems and indicators can be constructed by using it.

 

 

 

It is a powerful tool with a wide variety of applications

 

Here below are some examples of its use.

 

The Precision Index oscillator uses Demand Index in some of its calculations. The images speak for themselves

 

 

 

 

 

 

The power of Demand Index for spotting quiet buying and selling of insiders is often very powerful

 

I have prepared a detailed page showing many images of Demand Index and how to put it to good use.

 

 

   Interpretation:

Some insiders knew there was bad news coming and sold heavily three days before the news became public, the complex calculation by the Demand index formula, forewarned those who use it that something drastic was likely going to happen.

Demand Index is now available for NinjaTrader7 *NEW*

Demand Index shown below in a decisive crossing of zero indicating a new up trend starting June 2017

MORE EXAMPLES HOW TO USE DEMAND INDEX
Demand Index uptrend
 

 

Demand Index is one of the many components used in the construction of the Precision Index Oscillator shown below

 

 

                                                                                    Introducing the Precision Index Oscillator  (PI-OSC)  

    Created to provide trade timing signals by Precision Trading Systems in 2009,  a consensus indicator which has some powerful improvements and differences to other industry standard oscillators. At first glance to the untrained eye it would appear like another other oscillator, but when testing it side by side comparing system performance the true power of this excellent indicator begin to emerge.

 

Read more about Precision Index Oscillator or (PI-OSC)  

 

The power of Demand Index as a divergence indicator

 
  • The technique I prefer for using the Demand index as a divergence indicator is to monitor for a new low in the security and then cross check the same number of days back to see if there is a divergence in the Demand index:
  • The more pronounced this difference is in the Demand index the more likely that the price will snap back the other way, as show in the example above.

 

Using Demand Index to construct indicators and systems

 

 

  • Upper window shows a "stochastic demand index" which identifies buying and selling zones.

  • Middle window shows a count of divergences where a new high has been made ( Higher reading = more divergence )

  • Lower window show a count of divergences where a new low has been made. ( Higher reading = more divergence )

Demand Index is now available for NinjaTrader7 *NEW*

 

I have prepared a detailed new page showing many images of Demand Index and how to put it to good use.

 

MORE EXAMPLES HOW TO USE DEMAND INDEX

 

More free indicators from Precision Trading systems below

 

This collection of user functions and indicators below have been carefully assembled to provide a versatile tool kit for the trader.

None of the items below have lots of flashing lights, bells or buttons as you find in the "Holy grail" type worthless advertisements, and all have been carefully chosen because they actually work as trading tools.

 

Some have been coded by myself while others are the work of some of the best technicians worldwide.

I have re-coded most of these into Easy language format. (ELA, ELS)

 

There are some free items here which you can try out by sending me a mail and specifying which ones you wish to try out. Of course if you require something that is not here I would be very pleased to hear from you.

 

If you need any indicator, functions or systems coded into Easy Language, Metastock, vb.NET or C# format, then feel free request it.

 

              Ask Roger a question

 

 

 

 

 

Compatible with....          Indicator + function

Demand Index

An excellent oscillator that is versatile in its applications, computing its values from price and volume. It can be used as a divergence indicator and a trend following indicator. I have added a smoothing length feature to suit the needs of the individual user.

I find this indicator very useful for observing intra-day price action in actively traded stocks and futures...........More indicators

FREE  Stocks, Futures, Bonds, Forex, Indices etc

Author: James Sibbet. ( Open EL code )

 

Compatible with....         Indicator + function

                          Precision Lagless Average

A Lagless moving average with no overshoot that outperforms all other known industry standard moving averages. Comes with features including length changing algorithms and an anti-reverse option to minimise over trading in congestion areas, the result of 9 weeks intensive and complex coding after someone told me that the Hull average was better than the Jurikes JMA. In one session I was able to improve on the Hull average, but it took me a lot longer to improve on the Jurik JMA offering.......More details and examples

 

Price $297 (Pay-Pal)  Buy this item

Stocks, Futures, Bonds, Forex, Indices etc

 

Author: Precision Trading Systems. (Protected EL code)

 

Compatible with....    Indicator + function + signal

                                      Precision Stop

Trend following system and indicator that self adjusts its distance to suit noise levels and volatility factors, making it more "intelligent" than Parabolic SAR, or ATR type indicators.

Can be adjusted to suit any time frame from day-trading to long term trend following by adjusting MULTI settings, features include a neat max and min percentage distance setting to cater for individual tastes.

Takes the guess work out of knowing when the trend is up or down, based on your own input values.......More and example videos

 

Price $125 (Pay-Pal)   Buy this item

Stocks, Futures, Bonds, Forex, Indices etc

 

Author: Precision Trading Systems. (Protected EL code)

Compatible with....          Indicator + function                                         Insync Index

A "consensus" oscillator that highlights trend turning points, computing its values from an array of standard oscillators such as RSI Stochastic and Money Flow index.

It is best applied to range bound markets rather than trending ones.

 

I have added a REALVOLUME true-false feature  for users who use both tick volume and trade volume..........More details and examples

 

FREE     

Stocks, Futures (Unsuitable for Forex)

 

Author: Norm North. ( Open EL code )

Compatible with....           Indicator + function                            Precision divergence finder

A complex piece of code that observes multiple look backs of Demand Index lengths to hunt out when divergences exist.

Often produces stunning signals at exact market bottoms.

This is not an "always in the market" indicator and only flags up when sets up occur that show a real divergence in a market.

As Demand Index uses volume, to perform at its best this indicator needs real volume enabled..............More details and examples

 

Price $167  (Pay-Pal)   Buy this item

Stocks, Futures, Bonds  (Unsuitable for Forex)

 

 

Author: Precision Trading Systems. (Protected EL code)

Compatible with....              Indicator + function                          Trade Volume Index  ( TVI )

Beautiful piece of work by Steve B Achelis, which I used in some of my early systems. Makes for a smooth analysis of volumes flowing in and out of markets and has always been one of my favourites.

I have altered the code to allow length changes and smoothing.

.

Adds the "Volume dimension" to your price analysis in a clear and precise manner. This indicator is a valuable addition to system filters to confirm trend direction...........More

 

FREE

Stocks, Futures, Bonds, Forex, Indices etc

 

Author: Steve B Achelis. ( Protected EL code)

Compatible with....              Indicator + function                                           Q-Stick

A Simple and yet very efficient way of defining if a trend is in a bull or bear phase. Probably the best piece of work that Chande ever turned out, and yet seemingly forgotten by the whole world.

Setting lengths to 80 or more makes for a smooth analysis of trend, and the crossing of zero indicates trend direction.

 

See how early it signalled a bear move in the example when it crossed zero. Can be used as an short term oscillator with lengths less than 10 and often gives very early signals...More

 

FREE  

Stocks, Futures, Bonds, Forex, Indices etc

 

Author: Tushar Chande. ( Protected EL code)

Compatible with....                Indicator + function            Precision Volume (Tick volume for real-time )

An indicator I made for measuring demand-supply imbalances.

This indicator will only work correctly if used on real time data with tick volume enabled.

 

Early warning indicator ( Requires confirmation )

An oscillator type indicator which measures demand and supply imbalances in an easily understood form

 

Above zero = Demand > Supply over sampling period

 

New indicator highs or lows over a chosen long length of (100 bars+) often foretell a strong move is coming..........More

 

FREE     

Stocks, Futures, non-traded Indices (Unsuitable for Forex)

 

Author: Precision Trading Systems. (Protected EL code)

Compatible with....           Indicator + function                     Precision Index Oscillator ( Pi-Osc )

 

Highly sophisticated "consensus" indicator comprised of many different component signals. A real technicians tool that measures everything from divergences to probabilities to unique chart patterns in a single market indicator. 

Best results are given when analysing range bound and choppy markets rather than trending ones.

 

Some of its components use real volume so for this to perform at its best this indicator needs real volume............More

 

Price $397  (Pay-Pal)   Buy this item

Stocks, Futures, Bonds  

 

Author: Precision Trading Systems. (Protected EL code)

 

 

 

                To request a free indicator, see the information below

                                                                        

 

 

 

To qualify for your free Insync index ela file, just create a free account and score 1200 or greater in the weekly contest

 then drop me an email with your account name. You will receive the indicator shortly after.

 

 

 

 

 

 

 

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