DeMarker Analysis & DeMarker Signals
Created by Tom Demark.
This indicator is designed to overcome the general shortcomings of traditional overbought and oversold indicators.
The DeMarker is used by traders to predict potential market bottoms & tops by utilizing price info comparisons from one bar to the next.
XAUUSD Analysis & Generating Signals
This technical indicator is interpreted in the same way as other over-bought / oversold indicators. Overbought level is marked at 70 while over-sold is marked 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'll get to catch the long-term price trends. If you use the short time frame based on shorter periods you can enter the market at the point where the risk is minimum and you can plan the time of transaction so that it's within the major trend.
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