DeMarker Analysis and DeMarker Signals
Created 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 and tops by utilizing price data comparisons from one bar to the next.
Forex Technical Analysis and Generating Signals
This trading indicator is interpreted in the same way as other overbought / over-sold trading indicators. The over-bought 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.
Analysis in Forex Trading
If you use longer time-frames to plot the Demarker, you'll 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 & you can plan the time of transaction so that it's within the major trend.
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