DeMarker Analysis & DeMarker Signals
Created and Developed by Tom Demark.
This indicator is designed to overcome the general shortcomings of traditional overbought & oversold indicators.
The DeMarker is used by traders to predict potential market bottoms & tops by utilizing price data comparisons from one bar to the next.
FX Technical Analysis & Generating Signals
This indicator is interpreted on the same way as the other over-bought / oversold trading indicators. The over-bought level is labeled 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 FX Trading
If you use longer time-frames to plot the Demarker, you will get to catch the long-term market 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 as a trader can plan the time of trade transaction so that as it's within the major trend.
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