DeMarker Indicator - DeM Indicator

What is DeMarker Indicator

The Demarker Indicator is a tool which was introduced by Tom DeMark to help identify emerging buying and selling opportunities. Demarker Indicator demonstrates the price depletion phases which usually correspond with the price highs and bottoms.

The DeMarker indicator proved to be efficient at identifying trend break-downs as well as spotting intra-day entry and exit points.

Test the DeMarker Indicator in Action

The DeMarker Indicator is a technical analysis tool that will help you to trade more effectively.
Learn more about it in our educational guide. Confirm the theory on practice.

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How to Use DeMarker Indicator

DeMarker indicator fluctuates with a range between 0 to 1.

DeMarker indicator is indicative of lower volatility and a possible price drop when reading 0.7 and higher.
DeMarker indicator signals a possible price increase when reading below 0.3.

Demarker Indicator

DeMarker Indicator Formula

The DeMarker indicator is the sum of all price increment values recorded during the "i" period divided by the price minima. The Demarker indicator formula is:

The DeMax(i) is calculated:
If high(i) > high(i-1) , then DeMax(i) = high(i)-high(i-1), otherwise DeMax(i) = 0


The DeMin(i) is calculated:
If low(i) < low(i-1), then DeMin(i) = low(i-1)-low(i), otherwise DeMin(i) = 0


The value of the DeMarker is calculated as:
DMark(i) = SMA(DeMax, N)/(SMA(DeMax, N)+SMA(DeMin, N))


Where:
SMA - Simple Moving Average;
N - the number of periods used in the calculation.

How to use DeMarker Indicator in trading platform

Forex Indicators FAQ

What is a Forex Indicator?

Forex technical analysis indicators are regularly used by traders to predict price movements in the Foreign Exchange market and thus increase the likelihood of making money in the Forex market. Forex indicators actually take into account the price and volume of a particular trading instrument for further market forecasting.

What are the Best Technical Indicators?

Technical analysis, which is often included in various trading strategies, cannot be considered separately from technical indicators. Some indicators are rarely used, while others are almost irreplaceable for many traders. We highlighted 5 the most popular technical analysis indicators: Moving average (MA), Exponential moving average (EMA), Stochastic oscillator, Bollinger bands, Moving average convergence divergence (MACD).

How to Use Technical Indicators?

Trading strategies usually require multiple technical analysis indicators to increase forecast accuracy. Lagging technical indicators show past trends, while leading indicators predict upcoming moves. When selecting trading indicators, also consider different types of charting tools, such as volume, momentum, volatility and trend indicators.

Do Indicators Work in Forex?

There are 2 types of indicators: lagging and leading. Lagging indicators base on past movements and market reversals, and are more effective when markets are trending strongly. Leading indicators try to predict the price moves and reversals in the future, they are used commonly in range trading, and since they produce many false signals, they are not suitable for trend trading.