DeMarket (DeM) Indicator

The DeMarker Indicator or DeM was developed by Tom Denmark as an oscillator to figure out and spot potential opportunities at the most minute detail to gain signals for entering and exiting the market.

Interpreting a DeMarket Indicator 

Using the DeMarket indicator would show potential overbought and oversold conditions in the market. It is an oscillator measured between a band between 0.0 and 0.1 or (0 and 100). When the price movement reaches 0.7 or above, it would suggest a decrease in volatility and a price drop. When the price movement reaches 0.3 or below, this would indicate a chance that the price could rise.

Formula for calculating the DeMarker Indicator 

The DeMarker Indicator Formula is the amount of all possible price increase during a particular time frame (indicated as the letter “I”) and is divided by its minimum value:

The DeM has two components which are:

DeMax: which compares the recent high point to the previous ones.

[DeMax(i)] is calculated as follows:

If high(i) > high(i-1) , then DeMax(i) = high(i)-high(i-1), otherwise DeMax(i) = 0

DeMin: which compares the recent high point to the previous ones.

 [DeMin(i)] is calculated as follows:

If low(i) < low(i-1), then DeMin(i) = low(i-1)-low(i), otherwise DeMin(i) = 0

Then, the value of the DeMarker is calculated as:

DMark(i) = SMA(DeMax, N)/(SMA[DeMax, N]+SMA[DeMin, N])


SMA – Simple Moving Average
N – Number of periods used in the calculation


Risk disclaimer "TS Software Ltd – Trust Company Complex, Ajeltake Road, Majuro, Ajeltake Island, MH 96960, Marshall Islands is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of TS Software Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from or TS Software Ltd." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?