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Indicators: XDeMarker_BB

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Automated-Trading
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Automated-Trading  

XDeMarker_BB:

DeMarker indicator with the possibility to select smoothing algorithms that is made in color with dynamically changing oversold and overbought levels.

Colored dots are located on the DeMarker line. Their color depends on the location relative to the Bollinger middle band and DeMarker line direction. Ascending DeMarker above the middle band paints the dots in green, while descending one - in blue. Descending DeMarker below the middle band paints the dots in red, while ascending one - in magenta. The color of the signal dot-dashed line is changed depending on their location relative to the DeMarker line. In case the Demarker line is higher than the signal one, the color is sandy. Otherwise, it is lime.

Author: Nikolay Kositsin

 

XDemark BB

Sergey Golubev
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100427
Sergey Golubev  

Forum

Indicators: DeMarker (DeM)

newdigital, 2013.09.20 13:17

DeMarker Indicator

The DeMarker indicator named after Thomas DeMark is a momentum oscillator very similar in nature to the Relative Strength Index (RSI) developed by Welles Wilder. By comparing inter-period price maxima and minima the DeMarker indicator attempts to gather information about price movements to help determine the underlying trend strength and identify over-bought/sold trade conditions. One of the main benefits of the DeMarker indicator like the RSI is that they are less prone to distortions seen in indicators such as the Rate of Change (ROC), which are introduced by erratic price movements at the start of the analysis window which can cause sudden shifts in the momentum line even when the current price is little changed.

The Default time span for the calculation of the DeMarker indicator is 14 periods. The overbought and oversold lines are typically drawn at 0.7 and 0.3, respectively. Longer time spans in the calculation will result in shallower swings in the oscillator and vice versa, accordingly traders may wish to construct narrower overbought and oversold lines for longer time periods. DeMarkers based on short time spans experience greater volatility and are more suitable for indicating overbought and oversold conditions, whereas longer time spans with more stable trajectories are better suited for constructing trend-lines and analyzing price patterns.


Trade Signals-Ranging Markets

Traders should look to go long when the DeMarker falls below 0.3 and rises back above it or where there is a bullish divergence with price where the first trough is below 0.3. Traders should look to go short when the DeMarker rises above 0.7 and falls back below it or where there is a bearish divergence with price where the first peak is above 0.70. Failure swings (see RSI for example of a failure swing) strengthen other signals. 

Trade Signals- Trending Markets


Traders should look to go long during an up-trend, when the DeMarker falls below 0.4 and rises back above it and go short in a down trend when the DeMarker rises above 0.6 and falls back below it. Traders may wish to take profit on divergences or exit using a trend indicator.  Traders should avoid selling/buying at overbought/oversold levels in strongly trending markets as subsequent periods of sideways trading can return the oscillator to more normal levels without any material favourable movement in the direction of the trade. 


Reza Ebrahimi
325
Reza Ebrahimi  

Hi,

When using "xdemarker_bb", for some charts I get "zero divide in 'SmoothAlgorithms.mqh'" in the experts log & the indicator is shown completely blank.

What should I do?

Thanks.

Gihon
59
Gihon  

Excuse me Sir, 

You had an error in your code which was shown when compiling.

138 input Applied_price_ IPC=PRICE_CLOSE_;       // Price constant

Instead of 

138 input Applied_price_ IPC=PRICE_CLOSE;       // Price constant

G

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