DeMarker Technical Analysis & DeMarker Trading Signals

Created by Tom Demark.

This indicator is designed to overcome the general shortcomings of traditional overbought & oversold technical indicators.

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

Indices Technical Analysis and How to Generate Trading Signals

This indicator is interpreted on the same way as the other over-bought / oversold technical indicators. The over-bought level is labeled at 70 while oversold is marked at 30.

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

Bearish Reversal Signal - When DeMarker rises above 70, the bearish price reversal should be expected.

Technical Analysis in Indices Trade

If you use longer timeframes to draw the Demarker, you'll get to catch the longterm market trends. If you use the short time frame based on shorter periods you as a trader can enter the market at the point where the risk is minimum and you as a trader can plan the time of trade so that it's within the major trend.

Study More Lessons and Tutorials and Topics:

• Moving Average Indices Whipsaw Fake-Outs in Range Bound Sideways Markets Indices Strategy
• Strategies for Trading Germany DAX30 Indices
• Index MA MA Support and Resistance Levels Methods
• Candles Charts, Line Charts and Bar Charts Index Chart Types
• How to Predict Indices Charts using Charts Patterns Analysis