DeMarker is an MT4 trend indicator that works well for both intraday forex trading and stocks. It analyzes market momentum, overbought/oversold areas, and possible trend reversals in prices. The indicator identifies bullish and bearish divergences, as well as buy/sell signals for trend following. It can also detect trend continuation patterns, which can help you identify solid retracements and price breakout trading opportunities. This guide will show you how to trade stocks and Forex like a pro using the DeMarker indicator in MetaTrader 4.
How to use the DeMarker indicator in MT4 to spot potential buy-sell signals
DeMarker uses a separate indicator window to plot the trend, just like any other trend oscillator. The overbought zone is shown by a horizontal line of 0.7. The oversold zone of the market is indicated by another horizontal line of 0.3.
If the indicator value is above 0.3, then we consider the current oversold period to be over and the market is likely to start a bullish trend. The same applies to short selling. We wait for the DeMarker value to drop below 0.7 before selling.
The DeMarker value also rose above 0.3, which ensured a bullish momentum. The chart later showed a bullish pin bar, confirming that this was a good buying opportunity.
DeMarker is a great MT4 trend indicator that can be used by beginners in stock and forex trading. Once you understand how it works, DeMarker can help you monitor market momentum. We do not recommend that you execute buy-sell orders based on DeMarker trend signals in choppy markets. Please consider other price behavior factors such as candlesticks or price level indicators such as support/resistance and trend lines before making a trading decision.