Description
The Demand Index (DI) study is an oscillator based on price change rate, volume, and volatility; it is often used as a leading indicator for trend analysis. Its calculation is based on the ratio of buying pressure to selling pressure, assumed positive if the first value exceeds the second one and negative otherwise.
A trend reversal might be expected if values of Demand Index change sign from positive to negative and vice versa. Trend reversal is also possible if there is divergence between price values and Demand Index.
Input Parameters
| Parameter | Description |
|---|---|
length
|
The number of bars used to calculate the Demand Index. |
Plots
| Plot | Description |
|---|---|
DMIndx
|
The Demand Index plot. |
ZeroLine
|
The zero level. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.