DeMarker Forex Technical Analysis and DeMarker Forex Trading Signals
Developed by Tom Demark.
This indicator is designed to overcome the general shortcomings of traditional overbought and oversold technical indicators.
The DeMarker is used by Forex traders to predict potential market bottoms and tops by utilizing price data comparisons from one bar to the next.
Forex Technical Analysis and Generating Forex Trading Signals
This indicator is interpreted in the same way as other overbought / oversold indicators. The overbought level is marked at 70 while oversold 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.
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 can plan the time of transaction so that it is within the major Forex trend.