What is Demaker Indicator? Forex Trading Indicators

What is Demaker Indicator?

      Demarker is one of the Indicators, it based on the relationship between the period maximum with the preceding period maximum. When the current bar maximum is high, the relevant difference between the two will be registered. When the current bar maximum is low or equal the previous period maximum, the nil value will be registered. The different value established for N.

      The indicator falls below 30, the buy signal should be expected thus the same the indicator rises above 70, the sell signal should be expected.

Calculation:

DeMax(i) is calculated as:

            high(i) > high(i-1) , then DeMax(i) = high(i)-high(i-1), otherwise DeMax(i) = 0

DeMin(i) is calculated as:

            low(i) < low(i-1), then DeMin(i) = low(i-1)-low(i), otherwise DeMin(i) = 0

DeMarker value is calculated as:

           DMark(i) = SMA(DeMax, N)/(SMA(DeMax, N)+SMA(DeMin, N)

SMA - Simple Moving Average
N - Number of Periods used in Calculation