The DeMarker is one of the oscillators available on the Olymp Trade platform. Similar to other indicators, it identifies oversold and overbought areas on the market. The way of reading and using the DeM is, in fact, comparable to the other oscillators like CCI, RSI, or the Stochastic one.
Here, I want to show you how to configure the DeM indicator and how to use it during trading at Olymp Trade.
Configuring the DeMarker indicator on the Olymp Trade interface
Log into your Olymp Trade account, choose the asset, and set the chart for Japanese candlesticks first. Then, click on the indicator icon. A new window will open. Just scroll down to find oscillators. The DeMarker will be among them. Select it and it will appear on your chart.
The DeM oscillates between the values 0.3 and 0.7. The middle line 0.5 is also visible.
Now you can change the indicator’s parameters. Click the pen icon to do that. You can change the period, the color, and the width of the line.
How to trade with the DeMarker on the Olymp Trade platform
In the times of ranging market, the DeM oscillator will move around 0.5 value. There is no strong trend and it is best to observe the market and wait. You should take action when the DeM fluctuates beyond the values of 0.3 or 0.7.
So how do you trade? Well, there are several choices. You can enter a long position when the indicator’s line is nearing the 0.7 value. You may also open a short position once the DeM exceeds the 0.7 level because it means the downtrend is coming.
When the oscillator is approaching 0.3 value, it is a signal to place a sell position. But when it moves beyond 0.3, the uptrend is coming, and therefore, you should enter a buy trade.
This is a simple way to determine the direction of the forthcoming trend and trading along with it. If the DeM signals the uptrend, you place a long position. If it indicates the downtrend is on its way, enter a short position.
How to trade long-lasting positions using the DeMarket oscillator
Take a look at the exemplary chart above. It shows 3 consecutive winning trades based on the DeM indicator’s signals.
In the first situation, the DeMarker indicator was fluctuating below 0.3 value. Then it crossed 0.3 and moved forward 0.5. It was a signal for the upcoming uptrend and that is why I entered a 5-minute buy position.
The second situation is the opposite. The DeM exceeded the 0.7 value and after a time it had cut it and continued towards 0.5. The downtrend was coming so I entered a sell position.
And the third position is similar to the first one. The DeM was crossing 0.3 from below so I opened a buy position.
Now that you have an overview of the DeMarker indicator, go to your Olymp Trade demo account and check how it works. Leave a comment on your progress.
Best of luck!
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