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?

    Learn more about the DeMark indicator, a technical oscillator that traders use to measure the demand of an underlying security ... Read Answer >>
  2. Why is the Demarker Indicator Important for analysts and traders?

    Read about the rationale behind the DeMarker Indicator, a technical price oscillator that compares current trends to past ... Read Answer >>
  3. What is the Demarker Indicator formula and how is it calculated?

    Learn how to calculate the DeMarker Indicator, a technical oscillator created by Tom DeMark to identify overbought/oversold ... Read Answer >>
  4. How do you know where on the oscillator you should make a purchase or sale?

    Learn more about oscillator indicators, technical momentum measures that are used by traders to predict potential market ... Read Answer >>
  5. What is the Williams %R oscillator formula and how is it calculated?

    Learn the formula for calculating the Williams %R indicator, an oscillator similar to the stochastic oscillator, and the ... Read Answer >>
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    Technical analysis is a method of analyzing securities by evaluating current and historical price and/or volume activity. ... Read Answer >>
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