Forex Wiki Trading > FX Ind > DeMarker, DeM

DeMarker, DeM

  • December 3, 2013
  • Posted by: Forex Wiki Team
  • Category: FX Ind
No Comments 1614 1485

0
(0)
Name:
DeMarker, DeM
Author: MetaQuotes (2005.12.07 11:12)
Downloaded: 5338
Download:
DeMarker, DeM 1
 DeMarker.mq4 (3.0 Kb) View
DeMarker, DeM 2 demarker.gif (8.8 Kb)
DeMarker, DeM 3
DeMark Technical Indicator is based on the comparison of the period maximum with the previous period maximum. If the current period (bar) maximum is higher, the respective difference between the two will be registered. If the current maximum is lower or equaling the maximum of the previous period, the naught value will be registered. The differences received for N periods are then summarized. The received value is used as the numerator of the DeMarker and will be divided by the same value plus the sum of differences between the price minima of the previous and the current periods (bars). If the current price minimum is greater than that of the previous bar, the naught value will be registered.

When the indicator falls below 30, the bullish price reversal should be expected. When the indicator rises above 70, the bearish price reversal should be expected.

If you use periods of longer duration, when calculating the indicator, you’ll be able to catch the long term market tendency. Indicators based on short periods let you enter the market at the point of the least risk and plan the time of transaction so that it falls in with the major 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:

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

Where:
SMA — Simple Moving Average;
N — the number of periods used in the calculation.

Technical Indicator Description

Full description of DeM is available in the Technical analysis: DeMarker

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?



Author: Forex Wiki Team
We are a team of highly experienced Forex Traders [2000-2023] who are dedicated to living life on our own terms. Our primary objective is to attain financial independence and freedom, and we have pursued self-education and gained extensive experience in the Forex market as our means to achieve a self-sustainable lifestyle.
0 Comments