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 - Anticipate a positive shift in price direction when the DeMarker moves beneath the 30 level.
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 & draw 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 trade transaction so that as it's within the major trend.
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