DeMarker Indicator (DeMark Oscillator)
The DeMarker cares about one thing only: did today's high/low make a new high/low versus yesterday — it gauges buyer and seller "attempts" to spot exhaustion or buildup.
What it is
The DeMarker indicator, developed within Tom DeMark's indicator family, takes a unique angle: it ignores the size of price changes and counts "new-high attempts" versus "new-low attempts". When today's high exceeds yesterday's high, that is a buyer attempt (DeMax); when today's low undercuts yesterday's low, a seller attempt (DeMin). DeMarker = smoothed DeMax ÷ (smoothed DeMax + smoothed DeMin), locked to a 0–1 scale. 0.5 is equilibrium; near 1, buyer attempts dominate absolutely; near 0, sellers.
Origin
The DeMarker belongs to American analyst Tom DeMark's indicator family (DeMark is also the inventor of TD Sequential — the famous "9-count" system). Consistent with DeMark's philosophy, it watches the structure of price behavior (attempts at new highs/lows) rather than the magnitude of changes, trying to catch buyer/seller exhaustion before the trend visibly dies. MT5's default period is 14.
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The computation chain (MT5, 14-period smoothing):
Note the definitions: only genuine new highs/lows count (anything else records 0) — a do-nothing bar contributes nothing. This "count only attempts" design makes DeMarker especially sensitive to breakout attempts: a series of small new highs pushing the reading toward 0.7+ means buyers keep trying with limited force — a resolution approaches.
Worked example
An example of what an "attempt" means:
- A market prints a higher high five days in a row (five buyer attempts), but each advance is smaller than the last.
- DeMax is positive all five days → smoothed DeMax runs high → DeMarker pushes toward 0.7–0.8 (overbought).
- On day six the high fails to exceed day five's — the buyer attempts stop, and DeMarker rolls over.
High readings mean "buyers keep trying"; a rollover means the attempts stopped. It captures the persistence of attacks, not how far price moved — and persistence breaking often leads the pullback.
How to read it
The 0–1 scale:
| Range | Common interpretation |
|---|---|
| 0.7 – 1.0 | Overbought: buyer attempts dominate absolutely — persistent in trends, reverting in ranges |
| 0.5 – 0.7 | Bullish tilt: buyer attempts lead |
| 0.5 | The equilibrium of attempts |
| 0.3 – 0.5 | Bearish tilt: seller attempts lead |
| 0 – 0.3 | Oversold: seller attempts dominate absolutely — interpretation depends on regime, as always |
DeMarker's scale shape mirrors RSI (0–1 vs 0–100, 0.5 ↔ 50) but the engines differ: RSI weighs the ratio of move sizes, DeMarker counts new-high/low attempts. In a grind-higher RSI can be high while DeMarker is not (no new-high attempts) and vice versa — a disagreement worth investigating.
Common signals & usage
Extreme re-entry at 0.3/0.7
DeMarker pushing beyond 0.7 / below 0.3 then re-entering the band — the same extreme-reversion logic as RSI, high win rate in ranges.
Divergence
Price new high without a DeMarker new high — "new-high attempts" weakening, an earlier exhaustion clue than magnitude divergences.
The 0.5 direction
DeMarker persistently above 0.5 = buyer attempts dominate (bullish backdrop); persistently below = bearish.
Interrupted streaks
DeMarker stalling at highs while the price stops printing new highs — the attack is interrupted, often leading a short pullback.
Limitations & common mistakes
- The scale is 0–1, not 0–100: 0.7 corresponds to "RSI 70" — first-time users often mistake 0.7 for a weak reading.
- Dead readings in ranges: when no bar makes a new high or low, DeMax/DeMin are all zero and the reading sticks near 0.5 with no information.
- The usual flattening: in strong trends every day prints a new high and DeMarker parks above 0.7 — the same risk family as RSI/Stochastic.
- Not TD Sequential: DeMarker is a continuous oscillator; TD Sequential is a discrete counting system (the nine-count). Same author, different tools — do not mix them up.
- Lower-timeframe noise: attempts are frequent on 15-minute bars and the 14-period read still jitters — reversion trades need regime filtering.
DeMarker in MT5
DeMarker is a built-in MT5 oscillator (single line). The MQL5 function for programmatic use is iDeMarker:
| MQL5 function | iDeMarker() |
| Default period | ma_period=14 |
| Reading range | 0 – 1 (pivot 0.5) |
| Guides | 0.3 / 0.7 (customizable) |
| Display window | Sub-window |
iDeMarker smooths DeMax/DeMin with SMA, matching most platforms. Add 0.3/0.7 guide lines in the levels tab if not preset. The indicator offers no applied-price option — by definition it uses only highs and lows.
Behavior across timeframes
15-minute
Attempts fire constantly and the read jitters — use the 0.5 direction filter before extreme-reversion trades
1-hour / 4-hour
The main field for reversion and "interrupted streak" signals
Daily
The classic habitat: the 0.3/0.7 system and divergences are most representative here
Weekly
Weekly extremes are rare — readings near 0.9/0.1 often mark the end of long campaigns
Indicator combinations
Common pairings for DeMarker:
- With RSI: two overbought/oversold systems with different engines (move-size ratio vs new-high attempts) — joint extreme re-entries are the most reliable signals. RSI
- With ADX: ADX > 25 (trend) → ignore counter-regime extremes; ADX < 20 (range) → enable reversion. ADX
- With MA: trend direction from the MA stack + DeMarker pullback entries — ride the big trend, grab the small pullbacks. MA
FAQ
Q What does a DeMarker reading of 0.75 mean?
0.75 sits in overbought territory (above 0.7) — over the last 14 periods, "new-high attempts" dominate absolutely. It says buyers attack persistently; "overheated" does not mean "falls now": it can persist in trends and reverts in ranges — read it with the regime.
Q How is DeMarker different from RSI?
Both are 0–1 (0–100) oscillators with completely different engines: RSI weighs the ratio of move sizes; DeMarker counts attempts at new highs/lows (only genuine breaks of yesterday's high/low count). In a grind-higher RSI can be high while DeMarker is not, and vice versa — disagreements deserve investigation.
Q What is the relationship between DeMarker and TD Sequential?
Same author (Tom DeMark), completely different classes: DeMarker is a continuous oscillator (RSI-like), TD Sequential is a discrete counting system (nine consecutive qualifying bars trigger a signal). MT5 ships DeMarker; TD Sequential requires custom indicators.
Q Why does my DeMarker stick at 0.5 all the time?
The market is in a tight range: no bar makes a new high or low — DeMax/DeMin are all zero and the reading naturally pins at 0.5. That "no information" state is itself a message: the regime does not suit this indicator — switch to trend tools or wait.
Q How do I add DeMarker in MT5?
Menu: Insert → Indicators → Oscillators → DeMarker, or drag it from the Navigator onto a sub-window. Default period 14 — add 0.3 and 0.7 guide lines in the levels tab if not preset.
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