DeMarker Technical Indicator (DeMarker, DeM) [Oscillator] [Oscillator]

Demark indicator (DeMarker, abbreviated as DeM) — technical stock exchange indicatorp, also applicable to traders. DeMarker indicator is calculated on the basis of comparing the High and Low parameters of the current bar with the same parameters of the previous bar.

The indicator is standard for MetaTrader 4 trading terminal.

If the High price value of the current bar is higher than the same parameter of the previous candle, then indicator fixes the difference between them. If the current maximum is less than or equal to the High value of the previous bar, the difference is considered to be equal to "0", i.e. in the calculation of values DeM indicator cannot be a negative value.

Then in the calculations, a simple average of readings of the difference of maximum values for the specified period is taken, and the obtained figure becomes the numerator of the main formula DeMark indicator. It is also written in the denominator, while summing with the simple average of the differences of Low of the previous and current ones bars for the specified period. If the minimum of the current bar is greater than the maximum of the previous bar, the value is recognized as "0".

DeMarker indicator trading signals (DeM)

To evaluate the readings of the DeMarker indicator The levels of 30 and 70 are traditionally used. If the indicator has fallen below 30, traders are preparing for an upward trend reversal, if the value has exceeded 70, it is worth waiting for a downward reversal.

Formula for calculating the DeMarker indicator (DeM)

Readings of the DeMark indicator at the interval n set in the parameters:

1. The value of the DeMax(n) indicator is calculated:

if HIGH (n) > HIGH (n — 1) , то DeMax (n) = HIGH (n) — HIGH (n — 1), иначе DeMax (n) = 0.

2. The value of the indicator DeMin(n) is calculated:

if LOW (n) < LOW (n — 1), то DeMin (n) = LOW (n — 1) — LOW (n), иначе DeMin (n) = 0.

3. the value of the DeMark indicator is determined:

DMark(i) = SMA(DeMax, N)/(SMA(DeMax, N)+SMA(DeMin, N))

Where:

— HIGH (i) — максимальная цена текущего бара;
— LOW (i) — минимальная цена текущего бара;
— HIGH (i — 1) — максимальная цена предыдущего бара;
— LOW (i — 1) — минимальная цена предыдущего бара;
— SMA — simple moving average;
— N — количество периодов.