The Demand Index indicator is a simple MT4 momentum indicator. To detect a market trend, the indicator draws a signal line. The indicator, like many momentum oscillators, tells you about overbought or oversold market conditions.
The Demand Index indicator oscillates within a specific range, just like its counterparts. The Demand Index indicator oscillates between -100 and 100, but unlike the RSI, which oscillates between -100 and 100, it does not have any specific value. It is influenced by price momentum. This indicator is best used in all time frames. It is better to use it over longer time periods.
Demand Index Indicator buy/sell signals
This indicator will help traders to identify overbought or oversold conditions for a buy/sell signal. If the indicator signal line is close to the upper limit, it means that the price has reversed. At this point the trader should exit the long position and take a short trade.
The flip side of the coin is that the indicator signal line is close to its lowest range, indicating an uptrend. At this point, the trader should hold a long position and sell short. The indicator is best used on its own, but traders can also use other indicators, such as RSI and MACD, to confirm the signal.
Conclusion
The Demand Index indicator is a momentum oscillator that draws a signal to identify overbought or oversold areas. It functions as any other momentum oscillator. The indicator is available for download on our website.
