Demarker: Measuring Positive and Negative Price Movement from Highs and Lows

Summary

The document introduces the Demarker indicator and gives its calculation over a configurable lookback period. For each bar, it records only upward changes in the high relative to the previous high, and only downward changes in the low relative to the previous low. It sums those two measures across the period, then expresses the upward component as a percentage of their combined total. If both sums are zero, the stated formula returns a neutral value of 50.

This describes an indicator calculation, not a complete trading strategy. The source names threshold parameters but does not explain how to choose or interpret them, give entry or exit rules, or present empirical tests. Its discussion of the indicator's meaning is deferred to an unavailable reference, so the document supplies little guidance on signal use or limitations beyond the formula itself.

Key ideas

• Demarker compares positive changes in highs with negative changes in lows over a chosen lookback.
• Only upward high changes and downward low changes contribute to the respective sums.
• The indicator scales the upward component as a percentage of the combined movement totals.
• The formula returns 50 when both movement sums are zero.
• The document does not provide thresholds, trading rules, or test results.

Tags

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