Smoothed DeMarker Histogram with Breakout and Direction Colors

Summary

This indicator presents a smoothed DeMark oscillator as a histogram centered around zero, with values described as ranging from minus fifty to plus fifty. A configurable coloring approach can emphasize either breaks through overbought or oversold levels or changes in the histogram's direction. The symmetric display is intended to make the histogram easier to read.

The description identifies two visual modes but does not specify the threshold levels, smoothing settings, or rules for converting color changes into trades. It provides no chart examples, historical tests, or evidence that either coloring mode predicts future returns. The indicator also depends on a separate smoothing library. As a result, the document explains a visualization and its broad options, while leaving signal design and validation to the user; oscillator extremes or direction changes should not be assumed to work consistently across instruments or market conditions.

Key ideas

• The indicator displays a smoothed DeMark oscillator as a zero-centered histogram.
• Its values are described as spanning minus fifty to plus fifty.
• Coloring can mark overbought or oversold level breaks, or changes in histogram direction.
• The document does not state threshold settings or provide tested trading rules.
• The implementation depends on a separate smoothing library.

Tags

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