DeMarker
Demarker Technical Indicator
Section titled “Demarker Technical Indicator”The Demarker Technical Indicator compares the maximum value of the current period with the maximum value of the previous period. If the current maximum is higher, the difference between the two is recorded. If the current maximum is lower or equal to the previous maximum, a value of zero is recorded. The differences for a certain number of periods are then added up. This sum is used as the numerator of the DeMarker and is divided by the sum of the differences between the minimum prices of the previous and current periods. If the current minimum price is higher than the previous period, a value of zero is recorded.
Signal Lines
Section titled “Signal Lines”When the indicator falls below 30, it suggests a bullish price reversal. Conversely, when the indicator rises above 70, it indicates a bearish price reversal.
Long-Term vs Short-Term
Section titled “Long-Term vs Short-Term”Using longer periods when calculating the indicator allows you to capture the long-term market trend. On the other hand, using shorter periods helps you enter the market with less risk and align your transactions with the major trend.
Calculation of DeMarker
Section titled “Calculation of DeMarker”The value of the DeMarker for the i interval is calculated by dividing the sum of the differences between the maximum values of the current and previous periods by the sum of the differences between the minimum prices of the previous and current periods.