DeMarker Stock Indices Technical Analysis and DeMarker Stock Indices Signals

Developed by Tom Demark.

This indices technical indicator is designed to overcome the general shortcomings of traditional overbought and oversold technical indicators.

The DeMarker is used by Stock Indices traders to predict potential market bottoms and tops by utilizing stock index price data comparisons from one bar to the next.

Stock Indices Technical Analysis and Generating Stock Indices Signals

This indices technical 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 Stock Indices Signal - When the DeMarker falls below 30, the bullish stock index price reversal should be expected.

Bearish Reversal Stock Indices Signal - When the DeMarker rises above 70, the bearish stock index price reversal should be expected.

Technical Analysis

If you use longer time frames to 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 stock indices market at the point where the risk is minimum and you can plan the time of transaction so that it is within the major Indices trend.