DeMarker Analysis & DeMarker Signals

Developed by Tom Demark.

This indicator is designed to overcome the general shortcomings of traditional overbought and oversold indicators.

The DeMarker is used by the online traders to predict potential market bottoms and tops by utilizing price info comparisons from one bar to the next.

XAU/USD Analysis and Generating Signals

This technical indicator is interpreted on a similar way as the other overbought / oversold indicators. Overbought level is tagged at 70 while oversold is tagged at 30.

Bullish Reversal Signal - When the DeMarker falls below 30, the bullish price reversal should be expected.

Bearish Reversal Signal - When the DeMarker rises above 70, the bearish price reversal should be expected.

Analysis in XAUUSD Trading

If you use longer time-frames to draw the Demarker, you will get to catch the long-term price trends. If you use the short time frame based on shorter periods you as a trader can enter the market at the point where the risk is minimum and you as a trader can plan the time of trade so that as it's within the major trend.

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