Purpose of the DeMarker
The DeMarker indicator, developed by Tom DeMark, compares the latest highs and lows with those of the previous candles to measure demand. It moves between 0 and 1. Values above 0.7 are usually read as overbought and values below 0.3 as oversold.
How It Works
When you select DeMarker in the Trade Rule block, you can configure it with the following settings:
Period of DeMarker
The number of candles used for the calculation (standard: 14).
Shorter periods react faster but give more signals.
Time Frame of DeMarker
Sets the chart time frame for the DeMarker calculation.
Can be replaced with a variable or input for quick testing and optimization.
Candle ID of DeMarker
Defines which candle the calculation starts from.
0: Current candle (still forming).
1: Most recently closed candle.
Higher IDs refer to older candles.
Adjust of DeMarker (Modify the Result)
Apply an adjustment to the calculated value by adding, subtracting, multiplying, or dividing by a number.
Example
If you set:
Period: 14
Candle ID: 1
You get the DeMarker value of the most recently closed candle, between 0 and 1.
Use Cases
Detect overbought conditions above 0.7.
Detect oversold conditions below 0.3.
Time entries in the direction of the main trend after a pullback.
⚠ Tip: Like other oscillators, DeMarker works best in ranging markets. In strong trends it can stay overbought or oversold for a long time.