This indicator developed by Tom Demarker measures the demand for the underlying currency pair. It compares the maximum price of the recent period with the previous periods.
This oscillator shows movement between a range of 0 to 1 made up of a single line.
Demarker Indicator Calculation
Predetermined period “x” (Standard value of 14)
- Calculate DeMax = High – Previous High if >0, otherwise DeMax = 0
- Calculate DeMin = Previous Low – Low if >0, otherwise DeMin = 0
- DeM = MA of DeMax/(MA of DeMax +MA of DeMin)