DeMarker

DeMarker (Demarker, De Marker, DeM) is an indicator that identifies price exhaustion, as well as potential price minimums and maximums. This indicator fluctuates between 0 and 1 and compares the most recent price action to the previous period's price to measure the existing demand of the underlying asset.

 

DeMarker is used to identify risk levels prior to opening a position. In most cases, when an asset's price goes above 0.6, the volatility and risk are lower, while a reading below 0.4 can be treated as a sign of increasing risk. Furthermore, use of this indicator over long periods of time (weeks, months) allows an opportunity to trace the long term market tendency.

 

Methods of use:

 

1.When the indicator falls below 0.3, a bullish price reversal is to be expected.
2.When the indicator rises above 0.7, a bearish price reversal is to be expected.

 

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