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 … [Read more...]
Demand Index : The Concept
The Demand Index is a combination of price and volume that appears to provide predictions of price changes. There are 6 rules when using the demand index:- weakness in price follows divergence between the demand index and price; after extreme peaks in the demand index, prices usually rally to new highs; tops are signalled by high prices and low demand index values; if the … [Read more...]