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DeMarker Indicator

a.k.a. DeM

An oscillator from 0 to 1 by Tom DeMark that compares recent highs and lows to gauge whether a market is…
In plain English

An oscillator from 0 to 1 by Tom DeMark that compares recent highs and lows to gauge whether a market is overbought or oversold.

The DeMarker indicator compares each period's high with the previous high, and each low with the previous low, then smooths the results into a line between 0 and 1.

Readings above about 0.7 are often treated as overbought, below about 0.3 as oversold. Like other oscillators, it shines in ranges and gets stuck at extremes in strong trends.

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