Re: [amibroker] Anyone for a Demand Index? Logic Behind the Demand Index

["Geoff Mulhall" <gmulhall@xxxx>]

Steve,
 
Thanks !
 
Geoff
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----- Original Message ----- 
<DIV 
>From: 
Steve Wiser 

To: <A title=amibroker@xxxxxxxxxx 
href="">amibroker@xxxxxxxxxxxxxxx 
Sent: Sunday, May 13, 2001 5:23 AM
Subject: Re: [amibroker] Anyone for a 
Demand Index? Logic Behind the Demand Index
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.SteveAt 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 hopeyou 
do also.Your 
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