mrtools wrote: Thu Nov 19, 2020 9:33 am Looks like Mladen already did a mt4 version.

You also did a nice version too brother!

naluvs01 wrote: Thu Nov 19, 2020 5:31 pm I did some coding and added it

Good on you Nal! Looks good to me mate. Nailed it!

For your collection, here is also a "Smoothed" version with MTF upgraded by Mrtools! And as you may know, the author of the SDI, James Sibbet also stated that this is a good tool for Divergences. So of course, Mrtools even upgraded this version with his Divergences Pack

It could do with a little code optimization but this is a neat version.

Let's use this opportunity to recap on the SDI, too. For traders who are new to this tool, here's a description on how it's used:

Sibbets Demand Index

Overview

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

Interpretation

Mr. Sibbet defined six "rules" for the Demand Index:

1. A divergence between the Demand Index and prices
   suggests an approaching weakness in price.
2. Prices often rally to new highs following an extreme peak
   in the Demand Index (the Index is performing as a
   leading indicator).
3. Higher prices with a lower Demand Index peak usually
   coincides with an important top (the Index is performing
   as a coincidental indicator).
4. The Demand Index penetrating the level of zero
   indicates a change in trend (the Index is performing as a
   lagging indicator).
5. When the Demand Index stays near the level of zero for
   any length of time, it usually indicates a weak price
   movement that will not last long.
6. A large long-term divergence between prices and the
   Demand Index indicates a major top or bottom.

Example

The following chart shows Procter & Gamble and the Demand Index. A long-term bearish divergence occurred in 1992 as prices rose while the Demand Index fell. According to Sibbet, this indicates a major top.


Calculation

The Demand Index calculations are too complex for this book (they require 21-columns of data).
Sibbet's original Index plotted the indicator on a scale labelled +0 at the top, 1 in the middle, and -0 at the bottom. Most computer software will make a minor modification to the indicator so it can be scaled on a normal scale.