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DeMarker

The DeMarker (DeM) indicator evaluates buying and selling pressure by comparing the extrema of the current bar with the previous one. It highlights overbought and oversold zones and helps spot potential turning points.

Use the DeMarker class to work with this indicator.

Calculation

  1. For each bar compute intermediate values:
    DeMax = max(High − PreviousHigh, 0)
    DeMin = max(PreviousLow − Low, 0)
  2. Smooth DeMax and DeMin with a moving average of length Length.
  3. Calculate the final value:
    DeMarker = SMA(DeMax, Length) / (SMA(DeMax, Length) + SMA(DeMin, Length)).

The output is normalised between 0 and 1.

Parameters

  • Length — smoothing period controlling the responsiveness of the indicator.

Interpretation

  • Above 0.7 — overbought conditions, potential downward correction.
  • Below 0.3 — oversold conditions, potential upward reversal.
  • Divergence between price and the indicator warns about a trend change.

DeMarker can be used for counter-trend entries as well as confirming signals from momentum oscillators.

indicator_demarker

See also

RSI Stochastic Oscillator Momentum

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