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.

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RELATED FAQS
  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. 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 >>
  3. 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 >>
  4. What is Fibonacci retracement, and where do the ratios that are used come from?

    Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >>
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    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 >>
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