Demarker Indicator


DEFINITION of 'Demarker Indicator'

An indicator used in technical analysis that compares the most recent price action to the previous period's price in an attempt to measure the demand of the underlying asset. This indicator is generally used to identify price exhaustion and can also be used to identify market tops and bottoms. This oscillator is bounded between -100 and +100 and, unlike many other oscillators, it does not use smoothed data.

BREAKING DOWN 'Demarker Indicator'

Technical traders primarily use this indicator as a method of identifying the riskiness of the levels in which they wish to place a transaction. Generally, values above 60 are indicative of lower volatility and risk, while a reading below 40 is a sign that risk is increasing.

  1. Indicator

    Indicators are statistics used to measure current conditions ...
  2. Transaction

    1. An agreement between a buyer and a seller to exchange goods, ...
  3. Volatility

    1. A statistical measure of the dispersion of returns for a given ...
  4. Oscillator

    A technical analysis tool that is banded between two extreme ...
  5. Demand

    An economic principle that describes a consumer's desire and ...
  6. Underlying

    1. In derivatives, the security that must be delivered when a ...
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  1. What are common strategies traders implement when using the Demarker Indicator?

    The DeMark indicator is predominantly applied as a secondary tool of technical analysis. Traders and analysts use the DeMark ... Read Full Answer >>
  2. Why is the Demarker Indicator Important for analysts and traders?

    The DeMarker Indicator is a technical price oscillator that compares a security's price maximums and minimums over specific ... Read Full Answer >>
  3. What is the Demarker Indicator formula and how is it calculated?

    The DeMarker Indicator was developed by trader Tom DeMark in an attempt to overcome some perceived shortcomings with other ... Read Full Answer >>
  4. Can working capital be too high?

    A company's working capital ratio can be too high in the sense that an excessively high ratio is generally considered an ... Read Full Answer >>
  5. What are some of the most common technical indicators that back up Doji patterns?

    The doji candlestick is important enough that Steve Nison devotes an entire chapter to it in his definitive work on candlestick ... Read Full Answer >>
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    Discounted cash flow (DCF) analysis can be a very helpful tool for analysts and investors in equity valuation. It provides ... Read Full Answer >>

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