Technical indicator DeMarker was designed on the basis of current and previous bars’ maximums contrast. If the current bar’s maximum is lower, corresponding difference is registered. If it’s higher or equal, zero index is registered. Results of a specific period are summarized and is divided by DeMarker indicator, plus difference of rates minimums of previous and current bar. Zero index is registered if the rate minimum of the current bar exceeds the previous one.
Once the indicator mark is below 30, trend direction will probably increase, is higher than 70 – decrease.
Calculation of large periods enables to catch the long-term market trend, and the calculation of short-term ones provides the deal’s appearance in the root of the general trend.
