The technique I prefer for using the Demand index as a divergence indicator is to monitor for a new low in the security and then cross check the same days back to see if there is a divergence in the Demand index: The more pronounced this difference is in the Demand index the more likely that the price will snap back the other way, as show in the example below.

This is probably the most effective use for this indicator.

More examples of how to use Demand Index

 Demand index easy language code

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