DeMarker Stock Analysis & DeMarker Trading Signals

Developed by Tom Demark.

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

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

Stocks Trading Analysis & Generating Trading Signals

This stock indicator is interpreted in the same way as other overbought / oversold indicators. Overbought level is marked at 70 while oversold is marked at 30.

Bullish Reversal Trading Signal - When the DeMarker falls below 30, the bullish stocks price reversal should be expected.

Bearish Reversal Trading Signal - When the DeMarker rises above 70, the bearish stocks price reversal should be expected.

Technical Analysis in Stocks Trading

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 stocks market at the point where the risk is minimum and you can plan the time of transaction so that it is within the major Stock trend.