Sibbet Demand Index Divergence Indicator
Platform: MT4 Type: Pattern Last update: October 7, 2024The Sibbet Demand Index Divergence indicator is a custom forex trading indicator that uses the moving average of the price data. It helps traders to understand whether the bullish or bearish movement in the price is getting stronger or weaker.
That gauge is made of the histogram and the moving average (signal line).
See also: OBV Divergence Indicator
How to use the sibbet demand index divergence in practice?
Buy Entry:
- Open long trade, when the price is forming lower high and lower low structure.
- There is bullish divergence in price and Sibbet Demand Index.
- There is bullish crossover of the histogram line and the signal line.
- Place your stop loss a few pips below last swing low.
- Take profit at preferable R:R ratio.
Sell Entry:
- Open short trade, when the price is forming higher high and higher low structure.
- There is bearish divergence in price and Sibbet Demand Index.
- There is bearish crossover of the histogram line and the signal line.
- Place your stop loss a few pips above last swing high.
- Take profit at preferable R:R ratio.
