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Hello All again:
Per the metastock help file the following is the logic or interpretation of
the demand index:
_____________________
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. MetaStock uses a slight variation on the Sibbet's original Index
so that the Index is displayed on a "normal" y-axis scale. The author's
Index is plotted on a scale labeled +0 at the top, 1 in the middle, and -0
at the bottom. MetaStock uses a scale from +100 to -100. Other than the
difference in y-axis labeling, the indicator is calculated exactly as
designed by its author.
AND:
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.
_________________________________
Hopefully this comes close to the MS indicator.
Steve
At 03:10 PM 5/12/01 -0400, you wrote:
Hello All:
I hope you enjoy this one.
It is set up as an exploration, system and indicator.
I found this one on the Metastock Egroup user group board "Metastockusers"
and thought it might be interesting. I hope you do also.
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