DeMarker Indicator - An Introduction

The DeMarker indicator is a technical analysis tool that is used to identify possible price turning points. The DeMarker indicator is based on the idea that price movements are typically more explosive after periods of consolidation. As such, the DeMarker indicator can be used as a leading indicator, which means it can help traders anticipate future price movements.

How the DeMarker Indicator Works

The DeMarker indicator consists of a single line that oscillates between a minimum value of 0 and a maximum value of 1. When the DeMarker line is above 0.5, it indicates that prices are likely to continue moving higher. Conversely, when the DeMarker line is below 0.5, it indicates that prices are likely to continue moving lower.

 

The DeMarker indicator can also be used to identify overbought and oversold conditions. When the DeMarker line is above 0.8, it indicates that prices are overbought and may soon start to move lower. Alternatively, when the DeMarker line is below 0.2, it indicates that prices are oversold and may soon start to move higher.

How to Use the DeMarker Indicator in Fixed Time Trading

There are two main ways traders can use the DeMarker indicator in Fixed Time Trading on the Olymp Trade platform:

-As a standalone tool: In this scenario, traders would simply look for instances where the DeMarker line crosses above or below 0.5 and take positions accordingly. For example, if the DeMarker line moves from below 0.5 to above 0.5, traders would buy; conversely, if the DeMarker line moves from above 0.5 to below 0.5, traders would sell.

-As part of a larger strategy: In this scenario, traders would use the DeMarkar indicator in conjunction with other technical indicators or chart patterns to confirm possible price turning points before taking a position. For example, if trader sees a bullish engulfing pattern on a price chart and the corresponding DeMarkear line is above 0.5, they might take a long position; alternatively, if they see a bearish engulfing pattern on a price chart and the corresponding Demarkar line is below 0..5 they might take sell position..   No matter how you choose to use it, remember that the most important thing is always risk management; don’t risk more than you can afford to lose!

Conclusion:

The bottom line is that the Demarker indicator can be used as either as a standalone tool or part of wider strategy to help traders anticipate future price movements in fixed time trading on Olymp Trade platform . As with any other technical indicators or chart patterns , however , it’s important to remember that nothing is ever 100% accurate ; always use proper risk management techniques and don’t risk more than you can afford to lose !