DeMarker Technical Analysis & DeMarker Trading Signals

Developed 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 trading price data comparisons from one bar to the next.

Indices Technical Analysis and How to Generate Signals

This trading indicator is interpreted in the same way as other over-bought / oversold technical indicators. The over-bought level is marked 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 the DeMarker rises above 70, the bearish price reversal should be expected.

Technical Analysis in Indices Trading

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

Study More Lessons and Topics:

• Moving Average Indices Whipsaws in Range Markets Indices Trading Strategy
• Strategies for Trading Germany DAX 30 Indices
• Stock Indices Moving Average MA Support & Resistance Levels Strategies
• Candles Charts, Line Charts and Bar Charts Index Chart Types
• How to Predict Indices Charts using Charts Patterns Analysis