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Pocket Option is a binary options trading platform that offers a wide range of technical indicators, including the Demarker indicator. Traders on Pocket Option can use the Demarker indicator to help them identify potential entry and exit points in the market. In this article, I will cover everything about the Demarker Indicator on Pocket Option.
How set Demarker Indicator on the Pocket Option chart?
Configuring the Demarker indicator on Pocket Option is a simple process that can be done in a few steps. Firstly, log in to your Pocket Option account and select the asset you want to trade. Once you have selected the asset, click on the “Indicators” button. Now, search for the Demarker indicator and click on the name.
This will bring up a configuration window where you can adjust the settings of the indicator. You can choose the period of the indicator and adjust the colour and the width of the line, and other parameters that can help you customize the indicator to your liking.
Once you have made your desired changes, click the “Save” button to add the Demarker indicator to your chart. You can then use it to analyze the asset’s price movements and make trading decisions based on the signals generated by the indicator.
What is Demarker Indicator?
The Demarker indicator is a technical analysis tool that helps traders to analyse and identify the upcoming trends and reversals. This indicator was developed by Tom Demarker and this indicator is based on the market tops and bottoms. This indicator is very much similar to RSI and Stochastic indicators and If you have ever used the trend indicators like RSI and Stochastic you won’t find any issues in understanding the concept of the Demarker indicator.
The Demarker indicator calculates the difference between an asset’s high and low prices over a certain period of time and compares it to the previous period’s value. It then uses this information to generate buy and sell signals.
Demarker Indicator Formula
The Demarker indicator formula is calculated in two steps:
Step 1: Calculation of DeMax and DeMin values
DeMax = High(current) – High(previous)
DeMin = Low(previous) – Low(current)
Note: If High(current) < High(previous), then DeMax = 0
If Low(current) > Low(previous), then DeMin = 0
Step 2: Calculation of Demarker Indicator
DeMaxSMA = Simple Moving Average of DeMax for ‘n’ periods
DeMinSMA = Simple Moving Average of DeMin for ‘n’ periods
Demarker Indicator = DeMaxSMA / (DeMaxSMA + DeMinSMA)
Here, n= Number of periods (Typically 14 days)
How to trade with Demarker Indicator on Pocket Option?
As said above, this indicator works exactly like RSI and Stochastic. just like the two indicators the Demarker indicator has an overbought and oversold level. additionally, this indicator has a moving average that ribbons around these two levels. and it helps identify upcoming bullish and bearish trends.
Now, talking about how to trade with the indicator. when the indicator line is below line 30 or oversold level it signals an upcoming bullish trend and here we can place a buy trade.
Similarly, when the indicator line is above line 70 . It signals an upcoming bearish trend and here we can place a sell trade.
Given above is the 15 min chart of Visa OTC, and we can clearly see the Demarker indicator line below 30. It signals an upcoming bullish trend and here we can place for a 15-minute buy trade.
Similarly, Given above is the 15 min chart of Bitcoin, and we can clearly see the Demarker indicator line above 70. It signals an upcoming bearish trend and here we can place a 15-minute sell trade.
The Demarker indicator is a very good indicator that can help you find the possible trends and reversals. This indicator was developed by Tom Demarker. his mean goal was to help you identify the bullish and the Bearish trends using a moving average line. The Demarker indicator calculates the difference between an asset’s high and low prices over a certain period of time and compares it to the previous period’s value. It then uses this information to generate buy and sell signals. you can also use this indicator in conjunction with other trend indicators like RSI and stochastic this will help you give much better signals and better results.