# Demarker indicator

**Demarker **indicator was created by Thomas Demarker. Demarker indicator identifies the moments when Bulls and Bears begin to loose their power so the trend reversion can be expected. The indicator is based on comparing actual and previous prices, so it can find out whether the demand is rising or falling.

Demarker formula is as follows:

First of all we need to calculate DeMax and DeMin.

*DeMax = High – High-1 (if High n > High n-1)**DeMax = 0 (if High n <= High n-1)**DeMin = Low n-1 – Low n (if Low n < Low n-1)**DeMin = 0 (if Low n => Low n-1)**Demarker = [SMA DeMax / (SMA DeMax + SMA DeMin)]*

How to use the indicator:

Demarker values move in 0 to 1 range. Values above 0.7 mean the uptrend will be exhausted very soon so the trend reversal can be expected. Values bellow 0.3 mean the opposite (the Downtrend is to end shortly). The longer moving average we use for the Demarker calculation, the less, but more reliable trading signals we get.

If you are interested in a deeper study of this technical indicator and prefer ready to serve solutions, this section may be of interest to you. There you can find all the available indicators in Excel file for download.