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DeMarker - DeM

Technical Indicator DeMarker was worked out by American analyst Thomas DeMark. The indicator was introduced by Thomas DeMark to identify the highs and blows of the market. The indicator fluctuates with a range between 0 to 1. When the current high is situated above the previous one, the difference between them is registered. When the current high is situated at the same level as the previous one or above, zero volume is registered. The DeMarker indicator is the sum of all price increment values divided by the same value plus the sum of differences between price lows of the previous and current bars. When price low is above the previous one, zero level is fixed. In case DeMarker is below 30, the bullish trend is expected. If DeMarker indicator rises above 70, the bearish trend is expected.

In order to catch a long trend, it is necessary to calculate long-term periods. Indicators with short periods enable traders to enter the market planning the deal moment so that it is in the tide of the main trend.

Calculation

The value of the DeMarker for the "i" interval is calculated as follows:

The DeMax(i) is calculated:

If HIGH(i) > HIGH(i-1) , then DeMax(i) = HIGH(i)-HIGH(i-1), otherwise DeMax(i) = 0

The DeMin(i) is calculated:

If LOW(i) < LOW(i-1), then DeMin(i) = LOW(i-1)-LOW(i), otherwise DeMin(i) = 0

The value of the DeMarker is calculated as follows:

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

where

HIGH (i) - current bar high;

LOW (i) - current bar low;

HIGH (i - 1) - previous bar high;

LOW (i - 1) - previous bar low;

SMA - Simple Moving Average;

N - the number of periods used in the calculation.

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