The DeMarker, or “DeM” is an oscillator created by Tom Demarker in order to to measure the demand for any currency pair by relating price action to closed prices. It is mostly used to determine overbought and oversold areas and time when price reversal is imminent.

The DeMarker is designed as a single curve moving between 0 and 1, and typically has warning levels at both the 0.30 and 0.70. Values exceeding either level means that reversals can be expected.

## Demarker Oscillator Formula

DeMax (t) is calculated. If HIGH (t) > HIGH (t-1), then:

DeMax (t) = HIGH (t ) – HIGH (t-1), otherwise DeMax (t) = 0

DeMin (t) is calculated. If LOW (t) < LOW (t-1), then:

DeMin (t) = LOW (t-1) – LOW (t), otherwise DeMin (t) = 0

The DeMarker value is calculated as:

DMark (t) = SMA ( DeMax, N )/ (SMA (DeMax, N) + SMA ( DeMin, N))

Where:

HIGH (t) = the highest price of the current period;

LOW (t) = the lowest price of the current period;

HIGH (t-1) = the highest price of the previous period;

LOW (t-1) = the lowest price of the previous period;

N= number of periods used for the calculation;

SMA = Simple Moving Average.

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