DeMarker Divergence Generation III is modern indicator with complex mathematic algorithm (BJF Trading Group innovation). You will see divergenses on the chart and indicator. Arrows painted above/below the open bar and not in the past. You can see when actually you can trade. It is never to late! Signals based on closed bars so the arrows above/below open bar never disappear.
MT4 Indicator DeMarker Divergence - Short explanation
MT4 Indicator DeMarker Divergence indicates fractal divergence by DeMarker indicator.When divergence appears between DeMarker and the price, it indicates a high probability that the current trend will finish soon. A signal to buy is when a new Low-fractal is formed below the previous one and a corresponding DeMarker value is higher than the previous one. A signal to sell is when a new Up-fractal is formed above the previous one and a corresponding DeMarker value is lower than the previous value. The indicator has a lot of customizable settings.
DeMarker Indicator - Short Explanation
Technical traders primarily use this indicator as a method of identifying the riskiness of the levels in which they wish to place a transaction. Generally, values above 60 are indicative of lower volatility and risk, while a reading below 40 is a sign that risk is increasing.
DeMarker is based on the comparison of the period maximum with the previous period maximum. If the current period (bar) maximum is higher, the respective difference between the two will be registered. If the current maximum is lower or equaling the maximum of the previous period, the naught value will be registered. The differences received for N periods are then summarized. The received value is used as the numerator of the DeMarker and will be divided by the same value plus the sum of differences between the price minima of the previous and the current periods (bars). If the current price minimum is greater than that of the previous bar, the naught value will be registered.
When DeMarker falls below 30, the bullish price reversal should be expected. When DeMarker rises above 70, the bearish price reversal should be expected.
If you use periods of longer duration, when calculating DeMarker indicator, you’ll be able to catch the long term market tendency. Indicators based on short periods let you enter the market at the point of the least risk and plan the time of transaction so that it falls in with the major trend.