DeMarker Extreme-Level Reversal Markers on Price Charts

Summary

This post adapts the DeMarker oscillator into an on-chart display of possible reversal points. The indicator compares averaged upward high changes with averaged downward low changes and scales the result to a range from zero to one hundred. In the chart version, a shorter period is used, and very low readings place upward arrows and support segments below bars, while very high readings place downward arrows and resistance segments above bars. The drawings are limited to a specified time window. The author presents the idea for viewing possible long and short entries on a four-hour DAX chart.

The post describes the indicator construction and visual rules, but provides no backtest, trade records, or evidence that extreme readings reliably precede reversals. The thresholds, period, session window, and chart offsets are configurable choices rather than validated settings. Extreme oscillator values can persist during strong trends, so the chart markers alone do not establish a complete entry, exit, or risk-management method.

Key ideas

• The DeMarker calculation compares averaged upward high changes with averaged downward low changes.
• The chart adaptation marks very low readings with upward arrows and support segments.
• Very high readings receive downward arrows and resistance segments.
• The display is restricted to a configured time window and is presented for a four-hour DAX chart.
• The post gives no evidence that the extreme-level markers produce profitable reversals.

Tags

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