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DeMarker

The Demarker Technical Indicator (DeM) compares the current period’s maximum with the previous period’s maximum. If the current maximum is higher, the difference is recorded. If the current maximum is lower or equal, a value of zero is recorded. The differences for a specific number of periods are then added together. This sum is used as the numerator of the DeMarker and is divided by the same value plus the sum of differences between the price minima of the previous and current periods.

When the DeMarker indicator falls below 30, a bullish price reversal is expected. When it rises above 70, a bearish price reversal is expected.

Using longer periods when calculating the DeMarker indicator allows you to capture the long-term market tendency. On the other hand, using shorter periods helps you enter the market with less risk and align your transactions with the major trend.