Demsculpture indicator (DeM) in Forex is used to measure trading risks and to establish how many markets are overbought or oversold. The main criterion for a successful trade of Thomas DeMarc is considered a proper moment in time. When building Demsculpture indicator Analyse price changes, the maximum for a certain period of time, then compare this indicator with the previous time frame.
At the same time, the difference between the highest level is taken into account if the current maximum is greater than the previous one. In the opposite situation, the difference will be zero. Calculate DeM indicator in several steps:
- Selecting a certain period of time (n)
- Previous high quality calculation (n-1)
- Previous low low calculation (n-1)
- Actual high calculation (DeMax)
- Low time calculation (DeMin)
DeMarc’s goal is to create a indicator aimed at assessing current market conditions accurately and showing areas related to increased and price reduction. The variance of DeMarc value on charts differs from zero to one. The main level is the surplus level sold (0.30), as well as the level of overbought (0.70) markets. Demsculpture indicator Points to requests used by assets and risk measures that enable traders to make purchases or sales, reduce their own loss levels.
Demsculpture indicator Location and exit signals from the respective zones (overbought and oversold) and differences. If the pointer has crossed 0.7 Mark, then this is a sure call to sell if the bottom border is 0.3-to make a purchase.
The indicator differences reflect the differences between the price charts and the indicator itself. If the maximum price chart is higher than the previous one, and the maximum built by DeMarkerom is lower than the previous one, then we should expect the trend change from reaching down.