DeMarker Indicator

The DeMarker indicator, developed by Thomas DeMark, oscillates between 0 and 1 (or 0 to 100 in some implementations). Unlike RSI which uses closing prices, DeMarker compares the highs and lows of consecutive bars to measure demand exhaustion. Values above 0.7 indicate overbought conditions while below 0.3 indicates oversold.

How DeMarker Is Used in Trading

DeMarker excels at identifying points where buying or selling pressure is becoming exhausted. Because it focuses on highs and lows rather than closes, it captures intrabar dynamics that close-based indicators miss. This makes it particularly useful for identifying intraday turning points.

The indicator generates buy signals when it rises from below 0.3 (demand exhaustion ending) and sell signals when it falls from above 0.7 (supply exhaustion ending). These signals tend to be slightly earlier than equivalent RSI signals because of the high/low focus.

DeMarker pairs well with trend-following indicators. In an uptrend, only take DeMarker buy signals (bounces from oversold). In a downtrend, only take sell signals. This trend-aligned filtering significantly improves the signal reliability.

Access via API