DeMarker Oil Trading Technical Analysis & DeMarker Trading Signals

Developed by Tom Demark.

This technical indicator is designed to overcome the general shortcomings of traditional overbought & oversold technical indicators.

The DeMarker is used by Oil traders to predict potential market bottoms and tops by utilizing crude oil price data comparisons from one bar to the next.

Oil Trading Technical Analysis & How to Generate Trading Signals

This technical indicator is interpreted in the same way as other overbought / oversold indicators. Overbought level is marked at 70 while oversold is marked at 30.

Bullish Reversal Trading Signal - When the DeMarker falls below 30, the bullish crude oil price reversal should be expected.

Bearish Reversal Trading Signal - When the DeMarker rises above 70, the bearish crude oil price reversal should be expected.

Technical Analysis in Oil Trading

If you use longer time frames to draw the Demarker, you will get to catch the long term market trends. If you use the short time frame based on shorter periods you can enter the crude oil market at the point where the risk is minimum and you can plan the time of transaction so that it is within the major Oil Trading trend.