DeMarker (DeM) Indicator

The DeMarker (DeM) indicator compares the maximum price values of the current and previous time intervals:

  • When it’s above 70, rising prices are likely to start falling
  • When it’s below 30, falling prices are likely to start rising

DeMarker is actually a simple moving average over a number of intervals:

  • Use a large number of intervals to detect long-term trends
  • Use a small number of intervals to detect short-term trends and enter the market at the least risky point

DeMarker

Calculation

DeMarker is calculated from the simple moving average (SMA) of two other values, DeMax and DeMin.

DeMarker = SMA( DeMax(J), N ) / ( SMA( DeMax( J ), N) + SMA( DeMin( J ), N ) )

N is the number of intervals used for averaging.

            J is the current interval

DeMax compares the current and previous interval maximums (HIGH). If the current value is higher, DeMax is the absolute difference between the two values; if the previous value is higher, DeMax is 0.

If HIGH( J ) > HIGH( J – 1 )

DeMax = (HIGH( J ) – HIGH( J -1 )

else

DeMax = 0

Similarly, DeMin compares the current and previous interval minimums (LOW). If the current value is lower, DeMin is the absolute difference between the two values; if the previous value is higher, DeMin is 0.

If LOW( J ) < LOW( J – 1 )

DeMax = (LOW( J -1 ) – LOW( J )

else

DeMin = 0

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