DeM Indicator

This script provides an implementation of the DеMаrker (DeM) Oscillator, a classic technical indicator developed by Thomas DеMаrk to identify trend exhaustion and market reversal points.
Unlike the Relative Strength Index (RSI), which primarily uses closing prices, the DеMаrker indicator focuses specifically on intra-period highs and lows to measure buying and selling pressure.
[h2]🚀 How It Works[/h2]
The DеMаrker indicator compares the current period's price extremes to the previous period to isolate demand:

• [] DeMax (Buying Pressure): Calculated when the current high is higher than the previous high.
  [] DeMin (Selling Pressure): Calculated when the current low is lower than the previous low.
  
• Smoothing: Both values are smoothed using a Simple Moving Average (SMA), typically over 14 periods.
  

The resulting value oscillates between 0 and 1.0, providing a clear visual of price exhaustion.
[h2]💡 Trading Strategies[/h2]

• [] Overbought/Oversold Reversals:
  - Bearish Signal: A reading above 0.70 suggests the market is overbought. Traders often look for the line to cross back below 0.70 to confirm a downward reversal.
  - Bullish Signal: A reading below 0.30 suggests the market is oversold. A cross back above 0.30 can signal a potential upward reversal.
  [] Trend Exhaustion: High DеMаrker values during an uptrend often precede a period of consolidation or "price exhaustion."
  
• Divergence: Watch for cases where price makes a new high but the DeM indicator fails to reach a new peak, suggesting weakening momentum.
  

[h2]⚙️ Settings & Customization[/h2]

• [] DеMаrker Period: The default is set to 14. Shorten for more sensitivity; lengthen to filter out noise.
  [] Visual Thresholds: Levels are set at 0.7 and 0.3. For volatile assets like Crypto, some traders prefer 0.8 and 0.2.
  

[h2]🛠️ Integration[/h2]
The DеMаrker is most effective when combined with other tools such as Volume Profile, Moving Averages, etc.
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Disclaimer: This script is for educational and analytical purposes only. Past performance does not guarantee future results. Always manage your risk according to your personal trading plan.