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Demarker Lines: A Streamlined Approach to Trading

In many financial markets, working in alignment with the prevailing trend is often considered a key to success. However, binary options deviate from this norm due to the unique nature of contract trading. In conventional currency or stock market trading, a trader’s earnings are contingent upon accurately predicting the extent of an asset’s price movement — whether it will rise or fall. Profits are directly tied to the magnitude of this movement. Consequently, trading in the direction of the trend provides an opportunity to maximize profit margins, as the primary movement typically exceeds any corrections.

Contrarily, binary options operate differently. The task here is simply to predict the direction of the price movement, regardless of the number of points it changes. In this context, it becomes meaningful to trade binary options both during the main movement and corrections. Additionally, profitability can be achieved even in a market characterized by a flat trend, provided there is an indicator capable of delivering signals promptly and without delay. The article will discuss an interesting technical analysis tool widely used in trading options: Demarker, also known as the DeM indicator. Named after its creator, Tom Demark, the Demarker indicator aims to identify potential trend reversal points in the market. It primarily focuses on price highs and lows to provide insights into the strength of a current trend.

More about the Demarker indicator

It’s important to emphasize from the outset that the advisor shares similarities with other oscillators, but its notable feature lies in its promptness, standing out for its timely signals. Locating this tool in the Olymp Trade terminal is straightforward; it can be found in the list of built-in advisors. Once selected, it will appear at the bottom of the screen beneath the main graph.

How to trade using signals from Demarker

Once again, we will remind you that Demark Lines are very similar to Stochastic. Thus, the signals and its reading are also similar too. The visual distinction between Demarker and Stochastic lies in the number of signal lines, with Demarker featuring only one. Yet, this simplicity proves advantageous, eliminating any potential confusion during trading.

  • CALL is bought when the signal line leaves the 30 zone.

  • PUT is done when the moving average leaves zone 70 in a downward direction.

The expiration should be at least 2 minutes when trading on a minute chart.

Trading with the Demarker means opting for simplicity with just one line. This streamlined approach contributes to a clear and unambiguous trading experience. Demarker is versatile in its compatibility with various chart types, as the analysis unfolds within the oscillator window. Additionally, Demarker displays a commendable lack of selectivity towards assets, proving effective even in markets characterized by low volatility or a flat trend.

In essence, “Demark Lines” has the potential to serve as a universal tool, forming a foundational element of your trading strategy. However, it’s crucial to emphasize the importance of adhering to sound money management principles when relying on signals from a single advisor. The effectiveness of any trading strategy is inherently tied to the discipline of its execution, ensuring prudent risk management and long-term success in the dynamic landscape of financial markets.

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