141 Demarker (DeM)

DeM compares the most recent maximum and minimum prices to the previous period’s equivalent price to measure the demand of the underlying asset. From this comparison, it aims to assess the directional trend of the market.

It helps identify entry or exit points by capitalizing on probable imminent price trends ( it is a “leading” indicator because it signals an imminent change in price trend).

In contrast to Relative Strength Index, which focuses on the close price, DEM focus on maximumn and minum prices. It could benefr from an EMA (Ornage line, below) to remove short-term variability.

Figure 14.7: Demarker