DeMarker Analysis and DeMarker Signals

Developed & Created by Tom Demark.

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

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

Analysis and How to Generate Trading Signals

This indicator is interpreted on the same way as the other overbought / over-sold trading indicators. The overbought level is labeled at 70 while over-sold is marked at 30.

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

Bearish Reversal Trading Signal - When 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'll get to catch the long-term price trends. If you use the short timeframe based on shorter periods you as a trader can enter the market at the point where the risk is minimum and you can plan the time of transaction so that as it is within the major trend.

Study More Tutorials and Topics:

• How to Draw Downwards Trendlines in Gold Charts
• Example of Different Divergence Setups
• How Do You Add a Custom Trading Indicator to MT4 Platform/Software?
• MQL5 Signals MT4 and MQL5 Signals MT5 Platform
• MetaTrader 4 Software Tutorial Lesson