Close Menu
CryptoHoppers.comCryptoHoppers.com
    What's Hot

    Dubai govt-owned firm, Kiklabb, accepts BTC, ETH, USDt as payment option

    April 16, 2024

    Decoding the ‘why’ behind GMX’s unusual fee surge

    June 16, 2023

    Bitcoin Price Has Hit New all-Time Highs In Six Countries

    December 16, 2023
    Facebook X (Twitter) Instagram
    • Privacy Policy
    • Get In Touch
    Facebook X (Twitter) Instagram
    CryptoHoppers.comCryptoHoppers.com
    • News

      Crypto Exchange Gemini Shares IPO Details, Aims to Raise $317M

      September 2, 2025

      Japanese gaming firm Gumi bets $17 mln on XRP, skips Ethereum: Here’s why

      September 1, 2025

      Bitcoin Treasury Race Heats Up As Dutch Firm Shoots For $23-M Launch

      August 31, 2025

      Memecoin with high growth potential in 2025

      August 29, 2025

      Crypto ETFs: Ether Domination Continues as Bitcoin Trails With Modest Gains

      August 28, 2025
    • Technology

      Solana Set to Approve Alpenglow, Slashing Finality to 150ms

      September 1, 2025

      Philippines May Become First Country to Put Entire National Budget on Blockchain

      August 31, 2025

      Why MicroStrategy clones are choosing Solana over Bitcoin for corporate treasuries

      August 30, 2025

      XRP price could rocket past $5 in September as catalysts ignite

      August 29, 2025

      Comment on MetaPlanet Unveils $881M Global Stock Offering to Fuel Massive Bitcoin Buy by Bitcoin Risks Falling Below $110K as On-Chain Data Warns Selloffs

      August 28, 2025
    • Learn/Guide

      Pineapple Financial launches $100M Injective treasury, first public company to hold INJ

      September 2, 2025

      Hong Kong University’s business school considers accepting Bitcoin for tuition and donations

      August 31, 2025

      Reddit sunsets Collectible Avatar Creator Program and shifts royalties to artists

      August 30, 2025

      SBI-backed game maker Gumi announces $17 million XRP purchase

      August 29, 2025

      PYTH token soars 68% after Commerce Department taps Pyth Network for GDP feeds

      August 28, 2025
    • NFTs

      Slimesunday’s Magnum Opus: ‘Banned from New York’ Blows the Lid Off Digital Censorship | NFT CULTURE | NFT News | Web3 Culture

      July 22, 2025

      1mouth Analog: miirror’s Raw Leap from Digital to Handmade Chaos | NFT CULTURE | NFT News | Web3 Culture

      May 9, 2025

      NFTCulture Expands Into TCGs with Cardcore.xyz: Where Digital Collectibles Meet Competitive Play | NFT CULTURE | NFT News | Web3 Culture

      May 8, 2025

      From Moonshots to Broken Links: The Rise and Fall of CloneX | NFT CULTURE | NFT News | Web3 Culture

      April 24, 2025

      Pacific Spirit: Vinyl Meets Code in a Groundbreaking Generative Drop on Art Blocks | NFT CULTURE | NFT News | Web3 Culture

      April 16, 2025
    • Regulation

      Crypto Investors Face New Rules as South Korea Joins OECD’s Reporting System

      September 2, 2025

      Japan Post Bank to Roll Out Yen-Backed Digital Currency in 2026

      September 1, 2025

      Russia to Impose Stricter Rules on Banks Handling Crypto Transactions

      August 30, 2025

      CFTC Greenlights Offshore Crypto Access

      August 29, 2025

      CFTC Powers Up Crypto Oversight With Nasdaq’s Market Surveillance Platform

      August 28, 2025
    • Business

      Metaplanet Is About to Drop $881M Into Bitcoin, Here’s the Timeline

      August 27, 2025

      Sri Lanka’s E-commerce Platform Kapruka to Introduce Crypto Payments

      November 17, 2024

      Leading Eastern European Exchange Exmo Sells Business in Russia, Belarus

      November 16, 2024

      Bank of Russia to Launch Digital Ruble Payment Infrastructure by July 2025

      November 15, 2024

      Bitcoin Mining Company Mara Holdings Now Holds 26,747 Bitcoin: Q3 Earnings Report Reveals

      November 14, 2024
    • Live Pricing
    CryptoHoppers.comCryptoHoppers.com
    Home » A Guide to the Demand Index
    Learn/Guide

    A Guide to the Demand Index

    November 22, 20234 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    What is Demand Index
    Share
    Facebook Twitter LinkedIn Pinterest Email


    Some indicators are only available on very few platforms, making them rare indicators. The limited availability of these indicators itself is a compelling reason to take a keen interest in them. The Demand Index indicator is one such rare indicator. Intelligent traders understand the importance of investing time in learning indicators that are less known. Let’s master this indicator to gain an edge over our competitors in the competitive field of crypto trading.      

    1. What’s Demand Index 

    The Demand Index indicator is a popular technical indicator that utilises both price and volume data to evaluate the levels of buying and selling pressure influencing an asset. 

    2. The Origin of Demand Index: What You Should Know 

    James Sibbet, a financial expert, created the Demand Index indicator. He wanted a more sophisticated way to understand the balance between people who want to buy an asset and those who want to sell it. 

    3. Calculating Demand Index: The Simplest Explanation 

    Calculating the Demand Index is complex. Before going deep into the formula, it is better to know about its parameters. 

    The Demand Index formula has four important parameters:

    • Price: You shart with a series of prices. Typically, this is the closing price of an asset, but you can use other values like the midpoint between the high and low prices.
    • Constant: There is a constant value, which is usually set to 5, but you can adjust it.
    • Periods: This represents how far back in time you want to look. It is used to calculate moving averages within the formula.
    • HighLowBars: It is the number of trading bars used to find the highest high and lowest low values.

    Time to explore the calculation part.

    • First, calculate buying and selling pressure. Buying pressure is when the current price is higher than the previous day’s price, and selling pressure is when it is lower.
    • Then, you calculate the Demand Index using those pressures, the constant, and the periods you chose. This formula gives you a number that can range from 100 to -100. 

    4. Launching Demand Index on a TradingView Chart: Basic Steps 

    To launch the Demand Index on a TradingView chart, follow these basic steps:

    • Open a TradingView chart for the asset you are interested in.
    • Click on the ‘Indicator’s button at the top of the chart.
    • In the search bar, type ‘Demand Index’ and select it from the list of available indicators.
    • You can customise the indicator by adjusting parameters like the price type, constant, periods, and high/low bars. 
    • Click ‘OK’
    • Start analysis 

    5. How to Interpret Demand Index 

    Divergence is the price signal a trader generally looks for in this indicator. If the the Demand Index line diverges from the price and moves in the opposite direction, it is an important trading signal. 

    Beyond this general idea, there are six important rules the developer itself coined at the time of introduction of this indicator. In order to have a better or deeper interpretation, understanding these rules is important.  

    5.1. Six Rules of Demand Index 

    When the indicator was originally published, Mr. Sibbet introduced six rules in order to help users use the indicator in the best possible way. 

    These rules are:

    When the Demand Index diverges from the price and moves in the opposite direction, it is a sign of a potential bearish (downward) market trend.

    After the Demand Index reaches an extreme peak, prices often trend to rally to new highs. This suggests a bullish (upward) market trend.

    When prices rise but the Demand Index remains low, it can indicate a market top. In simple terms, it might be a good time to consider selling.

    If the Demand Index crosses through the zero line, it can signal a change in the market trend.

    When the Demand Index hovers close to the zero line, it suggests weak price movement that is unlikely to last for long.

    If a long-term divergence between the Demand Index and price develops, it can predict a major market top or bottom. This is a strong indicator for potential trend reversals. 

    Endnote 

    In conclusion, the Demand Index indicator, developed by financial expert James Sibbest, integrates price and volume date to assess buying and selling pressure in an asset. Its complex calculation involves parameters like price, constant, periods, and HighLowBars. Utilising TradingView facilities easy application, allowing customisation of key parameters. Traders focus on divergence for crucial signals, guided by six rules established by Sibbet. These rules encompass bearish divergence, new highs, top indicators, zero line crossing, near-zero conditions, and long-term divergence, providing valuable insights for market trend analysis.





    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Pineapple Financial launches $100M Injective treasury, first public company to hold INJ

    September 2, 2025

    Hong Kong University’s business school considers accepting Bitcoin for tuition and donations

    August 31, 2025

    Reddit sunsets Collectible Avatar Creator Program and shifts royalties to artists

    August 30, 2025

    SBI-backed game maker Gumi announces $17 million XRP purchase

    August 29, 2025
    Top Posts

    Bitcoin Price Has Hit New all-Time Highs In Six Countries

    December 16, 2023

    Multichain protocol sails through all challenges

    June 5, 2023

    Cookie price pulls back into major support zone but bullish structure remains intact

    May 27, 2025

    Welcome to CryptoHoppers.com! Stay informed with the latest updates, trends, and insights from the dynamic world of cryptocurrencies. From Bitcoin to altcoins, blockchain technology to decentralized finance (DeFi), we cover it all. Discover expert analysis, market trends, regulatory developments, and exciting innovations shaping the crypto industry.

    Top Insights

    Crypto Exchange Gemini Shares IPO Details, Aims to Raise $317M

    September 2, 2025

    Japanese gaming firm Gumi bets $17 mln on XRP, skips Ethereum: Here’s why

    September 1, 2025

    Bitcoin Treasury Race Heats Up As Dutch Firm Shoots For $23-M Launch

    August 31, 2025
    Advertisement
    Demo
    CryptoHoppers.com
    Facebook X (Twitter) Instagram
    • News
    • Technology
    • Learn/Guide
    • Regulation
    • NFTs
    • Business
    • Live Pricing
    © 2025. Designed by CryptoHoppers.com.

    Type above and press Enter to search. Press Esc to cancel.