The Sibbet Demand Index Divergence indicator for Metatrader 4 is an oscillator that provides solid free Forex trading signals.
The indicator works for any time frame and currency pair of your preference.
The Sibbet Demand Index Divergence indicator oscillates above and below the zero point: above the zero point is considered bullish, while below bearish.
Key Features
- Good for scalping FX
- Good for day trading FX
- Does not repaint
- Well worth adding to your indicator collection
This indicator can work together with any existing trading strategy or system.
Free Download
Download the “sibbet-demand-index-divergence.ex4” MT4 indicator
Indicator Example Chart
The USD/JPY 5-minute chart below shows the Sibbet Demand Index Divergence Forex indicator in action.
Simple Trading Signals
BUY:
- A buy signal is given when the Sibbet oscillator turns back above the zero level (colored green).
- Place a stop loss below the previous swing low.
- Exit the buy trade for a predetermined profit target or wait for the oscillator to turn back below the zero level.
SELL:
- A sell signal is given when the Sibbet oscillator turns back below the zero level (colored red).
- Place a stop loss above the previous swing high.
- Exit the sell trade for a predetermined profit target or wait for the oscillator to turn back above the zero level.
Download Now
Download the “sibbet-demand-index-divergence.ex4” MT4 indicator
Sibbet Demand Index Divergence MT4 Strategy with RSI Confirmation
The Sibbet Demand Index Divergence Indicator MT4 is designed to spot potential reversals by identifying divergences between price and demand momentum.
To improve the accuracy of trade entries, this strategy pairs it with the RSI indicator, which helps confirm momentum shifts.
Chart Setup
- Primary Indicator: Sibbet Demand Index Divergence Indicator MT4
- Confirmation Indicator: RSI (14)
- Timeframe: 1-hour (H1) or 4-hour (H4)
- Currency Pairs: Major pairs such as EUR/USD, GBP/USD, USD/JPY
Buy Trade Setup
- The Sibbet Demand Index Divergence Indicator shows a bullish divergence (price makes a lower low while demand index makes a higher low).
- RSI is below 30 and starts to turn upwards, indicating oversold conditions.
- Enter a buy trade once the next candle closes, confirming the shift in momentum.
Sell Trade Setup
- The Sibbet Demand Index Divergence Indicator shows a bearish divergence (price makes a higher high while demand index makes a lower high).
- RSI is above 70 and begins to turn downwards, indicating overbought conditions.
- Enter a sell trade at the close of the confirmation candle.
Stop Loss and Take Profit
- Stop Loss: Place just below the recent swing low for buy trades or above the recent swing high for sell trades.
- Take Profit: Aim for a risk-to-reward ratio of at least 1:2 or target the next significant support/resistance level.
Additional Tips
- Use higher timeframe trend confirmation to avoid counter-trend trades.
- Avoid trading during major news releases to reduce volatility risks.
- Combine with price action signals for stronger confirmation.
Customizable Parameters & Indicator Settings
Time frame, length, phase, signal length, signal phase, divergence, alerts ON, alerts on slope, alerts email, colors, style
Feel free to explore the indicator’s different parameters and settings to create your own personalized indicator setup.
Technical Information
Currency Pairs: works on any currency pair
Trading Platform: developed for Metatrader 4 (MT4)
Time Frames: any
Indicator Type: buy/sell signal oscillator
Final Thoughts
The Sibbet Demand Index Divergence Indicator for MT4 is a powerful tool for traders aiming to identify potential trend reversals.
By highlighting divergences between price movements and underlying demand, it offers insights into market strength that may not be immediately apparent.
This indicator is particularly useful for momentum-based trading strategies, providing early signals of possible market shifts.
Its versatility across various timeframes and currency pairs makes it adaptable to different trading styles.
Overall, the Sibbet Demand Index Divergence Indicator is a valuable addition to any trader’s toolkit, aiding in making informed trading decisions.
