Demarker Indicator

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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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Indicator

    Statistics used to measure current conditions as well as to forecast ...
  2. Demand

    An economic principle that describes a consumer's desire and ...
  3. Transaction

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

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

    A technical analysis tool that is banded between two extreme ...
  6. Underlying

    1. In derivatives, the security that must be delivered when a ...
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