Web Trader MT5
Tom DeMark created the Demarker Indicator. It’s a technical analysis indicator that assesses how many assets are being bought versus the previous time frame. It is used to spot price exhaustion levels; times when a trend could be losing steam and a potential reversal could be close.
The indicator ranges from 0 to 1. Levels above 0.7 are normally considered overbought, and the asset might be due for a pullback. Readings under 0.3 indicate oversold conditions, indicating a possible bounce.
The Demarker, unlike some other momentum indicators, is based on intraperiod highs and lows rather than closing prices, which its supporters believe provides a better indication of the area where buying and selling pressures are truly occurring. It is best used in conjunction with other tools, rather than in isolation.
Example: A forex trader is observing a currency pair that has been consolidating in a strong upward trend over the past few days. The Demarker Indicator starts to rise above 0.7 and then levels off.
The move higher is not the target for this trader; rather, he waits for price action confirmation to determine whether the trend has further to run or if a reversal is setting up.
