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should I use Hydrostatic Pressure Transmitter for
measurement of DENSITY of filled tank ?
If YES then please explain how.

Answer Posted / rajkumar

A fluid column generates a specific hydrostatic pressure as
a function of density and filling level. A pressure sensor
attached to the bottom of a tank measures this pressure with
respect to a reference pressure (generally ambient
pressure). Conclusions are then drawn as to the filling
level with the aid of the known fluid density. Hydrostatic
level measurement is suitable for virtually all types of
fluids and produces very precise measured values, dependent
on the accuracy of the pressure transmitter.

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