DeMarker Indices Technical Analysis and DeMarker Indices Trading Signals
Developed by Tom Demark.
This stock indices indicator is designed to overcome the general shortcomings of traditional overbought and oversold technical indicators.
The DeMarker is used by Indices traders to predict potential market bottoms and tops by utilizing stock indices price data comparisons from one bar to the next.
Indices Technical Analysis and Generating Indices Trading Signals
This stock indices indicator is interpreted in the same way as other overbought / oversold indicators. The overbought level is marked at 70 while oversold is marked at 30.
Bullish Reversal Indices Trading Signal - When the DeMarker falls below 30, the bullish stock indices price reversal should be expected.
Bearish Reversal Indices Trading Signal - When the DeMarker rises above 70, the bearish stock indices price reversal should be expected.
Technical Analysis
If you use longer time frames to draw the Demarker, you will get to catch the long term market trends. If you use the short time frame based on shorter periods you can enter the stock indices trading market at the point where the risk is minimum and you can plan the time of transaction so that it is within the major Indices trend.