Volume-Weighted DeMarker Histogram and Adaptive Thresholds

Summary

The document describes a DeMarker oscillator transformed into a histogram and scaled by trading volume. Its stated calculation multiplies the centered DeMarker value by volume, so readings reflect both the oscillator’s direction and the volume recorded at each indicator tick. The display is therefore a volume-weighted technical indicator rather than the unmodified DeMarker oscillator.

It also explains that overbought and oversold thresholds should be transformed using the same scaling, with two levels on either side of zero used to indicate potential breakouts. The thresholds are no longer fixed values in the final indicator because they are adjusted by the source oscillator’s midpoint and volume. The document provides no chart interpretation rules, trading tests, or evidence that these signals are profitable. It is a brief indicator description, so practical use would require implementation details and independent evaluation.

Key ideas

• The indicator multiplies the centered DeMarker reading by volume to produce a histogram.
• The volume scaling makes the plotted values depend on both oscillator readings and traded volume.
• Overbought and oversold thresholds are adjusted with the same transformation as the indicator.
• Two threshold levels on each side of zero are used to flag potential breakouts.
• The document gives no performance evidence or rules for acting on the signals.

Tags

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