DeMarkerOne of the oscillator technical tools is called the DeMarker indicator.

It was developed by Tom DeMarker who decided to work out how to calculate the demand of a pair of currencies.
This DeMarker indicator connects recent price action with the price that has recently closed.
Dealers wanting to know level of risk, when a price will become exhausted and the overbought and oversold conditions will use this.
A curve that moves between zero and '1' is an oscillator and this applies to DeMarker.
There are some different versions of the indicator that use a '100' and '-100' range.
This DeMarker indicator will normally consist of some lines that are placed at the '0.30' and '0.70' points as warning signs.
Values that exceed these markers are deemed to be riskier whereas those that don't are not so risky.
The areas near where the curve crosses the lines will be the oversold and overbought conditions.
Formula for DeMarkerr
It's normal for MT4 to have DeMarker with this sequence:
1. Pick a time frame 'X' (Common is '14', but '8' or '9' are more sensitive);
2. Work out the DeMax = High - Previous High if >0, otherwise DeMax = 0;
3. Work out DeMin = Previous Low - Low if >0, otherwise DeMin = 0;
4. DeM = MA of DeMax/(MA of DeMax + MA of DeMin).
The DeMarker indicator will be a moving curve and software programs can work this out.
Dealers may sometimes put in an exponential moving average as well so as to boost the dealing signals.
As these signs signify that there will be a trend change the DeMarker is viewed as a 'leading' indicator.
Its downside is that the timing of DeMarker is poor which is why a lagging indicator is often added.
Its easier to identify the bigger lows with the DeMarker rather than the big highs.
Volatility and chance of drop signs will increase as does the indicator's sensitivity when the time span is smaller.
As previously mentioned, the DeMarker values that are under 0.30 or above the 0.70 level should be looked at.
But the areas of most interest will be the high and lows especially when they approach 1 or 0.
This DeMarker oscillation will be more effective over longer periods such as daily ones but they can also be applied to the shorter ones as well.
All technical indicators do not come with a 100% success guarantee and this is also true of the DeMarker indicator.
There are always going to be occasions when the wrong signals are given but even so the consistency of the positive signals are sufficient that overall the forex dealer should be at an advantage.
It will take time to develop the skill and technique needed to fully understand the signals provided by the DeMarker indicator.
Other tools that work well with the DeMarker indicator can improve the signals it gives off so the potential to spot trend changes increases if this happens.
There are some people who may not be best placed to work with forex dealing as a type of investment due to the risks involved.

Although the DeMarker indicator will overall increase your likelihood of noticing an impending change in trend, the leverage proportions might sometimes work for you or sometimes against you.
Or, sometimes your losses will be greater than what you originally invested.