The Demarker Indicator is a very effective technical analysis tool that was created by Tom Demarker for the identification of high-risk buying or selling areas in a particular investment market.There are two main Demarker indicators which exist. One includes values from -100 to 100 and 2nd includes values from 0 to 1. The basic rule used for this indicator is same in both cases. The DeMax variable for the period is difference between the highs. Moreover, Demin variable is difference between lows. The Demarker Indicator Can be calculated through dividing the sum of moving averages of Demax as compared to DeMin.
When the Demarker scale measurement is more than 0. 7 then it means that downward price is expected in next few days. However, if the Demarker scale shows measurement of less than 0.3 then it means price will shortly turn upward. Investors should keep in mind that time duration between .3 and .7 can be categorized as period of relatively low-risk for entering a given asset market. Therefore, intelligent and clever investors can easily use this time period for their advantage through makings smart investing moves.