DeMarker Analysis and DeMarker Trading Signals

Developed by Tom Demark.

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

The DeMarker is used by traders to predict potential market bottoms and tops by utilizing price info comparisons from one bar to the next.

Analysis & How to Generate Signals

This indicator is interpreted in the same way as other overbought / over-sold trading indicators. The over-bought level is marked at 70 while over-sold 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.

Technical Analysis in Gold Trading

If you use longer time frame to draw the Demarker, you will get to catch the long-term price trends. If you use the short timeframe 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.

Study More Tutorials and Topics:

• How to Draw Downwards Gold Trend-lines in Gold Charts
• Example of Different Divergence Gold Setups
• How Do You Add a Custom Trading Indicator to MT4 Platform?
• MQL5 Signals MetaTrader 4 & MQL5 Signals MetaTrader 5 Trading Software
• MT4 Gold Software Platform Software Tutorial Course