Demarker Indicator
An indicator used in technical analysis comparing the most recent price action to the previous period's price in an attempt to measure the demand of the underlying asset. This indicator is generally used to identify price exhaustion and can also be used to identify market tops and bottoms. This oscillator is bounded between -100 and +100 and does not use smoothed data like it is used in many other oscillators.
Investopedia Commentary
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.
Related Links
Momentum and the Relative Strength Index
Getting Confirmation with the Momentum Strategy
Peak-and-Trough Analysis
See also: Demand, Exhaustion, Indicator, Oscillator, Transaction, Underlying, Volatility