DeMarker: A Smoothed High-Low Overbought and Oversold Indicator

Summary

The document presents DeMarker as a bounded technical indicator for identifying potential overbought and oversold conditions, with reference levels of 70 and 30. It describes the calculation using changes in consecutive highs and lows: upward high changes contribute to one component, while downward low changes contribute to another. The indicator compares the rolling sums of these components over 13 periods and expresses their relative share on a 0-to-100 scale.

The source characterizes DeMarker as smoother than RSI and suggests it may identify turning points more effectively, but supplies no comparative study, market data, or trading results to support that claim. It provides a code-like formula and parameter names, but does not discuss instrument choice, timeframe, signal confirmation, or position and risk management. The levels should therefore be understood as a general interpretation guide rather than validated entry or exit rules. The remainder of the source is privacy-policy material unrelated to the indicator.

Key ideas

• DeMarker uses changes in consecutive highs and lows to form two directional components.
• The indicator compares their rolling sums over 13 periods and scales the result from 0 to 100.
• Levels around 30 and 70 are presented as oversold and overbought reference zones.
• The source describes DeMarker as smoother than RSI but provides no evidence for superior turning-point detection.
• The formula alone does not define a complete trading strategy or risk-management method.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.