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Oscillators

DeMarker

An oscillator between 0 and 1 that compares recent highs and lows to spot exhausted moves.

2 min read · Try it on a live chart ↗

The idea in plain words

If each candle keeps making higher highs, buyers are in control; if lower lows, sellers are. DeMarker measures the balance of these pushes over the last few candles.

How it is calculated

Each candle, DeMax is how much the high rose versus the previous high (0 if it did not), DeMin how much the low fell. The indicator is the average DeMax divided by the sum of both averages.

DeMax = high − previous high if positive, else 0
DeMin = previous low − low if positive, else 0
DeMarker = SMA(DeMax, N) ÷ (SMA(DeMax, N) + SMA(DeMin, N))   (default N = 14)

How to use it

  • Above 0.7: the move up may be exhausted. Below 0.3: the move down may be exhausted.
  • Works best for timing entries in the direction of a bigger trend (buy dips below 0.3 in an uptrend).

Drawing conclusions

  • Turning back from an extreme is more useful than simply being there.

Example

In a rising market, DeMarker dips to 0.25 during a pullback and turns up: a buy-the-dip signal in line with the trend.

Prices in examples are illustrative.

Watch out for

  • Extremes can persist in strong trends.

A little history

Developed by Tom DeMark, known for his exhaustion-timing indicators.

Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.