Tom DeMark built the DeMarker indicator (DeM) in the 1990s as part of his suite of reversal-focused tools. Where most oscillators measure momentum or close-position-in-range, DeMarker measures something subtly different: it compares current highs and lows to the previous bar’s highs and lows, then smooths the relative magnitudes of those differences over a chosen period. The result is a single line oscillating between 0 and 1, with reversal-rich extremes at 0.7 and 0.3.
The indicator is less famous than RSI or Stochastic but in my testing it produces fewer false reversal signals — especially on H4 and daily timeframes where DeMark intended it to be used.
What is the DeMarker Indicator?
DeMarker compares the current bar’s high to the previous bar’s high (DeMax) and the current bar’s low to the previous bar’s low (DeMin). It sums each over the lookback period (default 14), then divides DeMax by (DeMax + DeMin) to produce a value between 0 and 1.
In practical terms: when DeMarker is high, recent bars have been printing more new highs than new lows — exhausted upward momentum. When DeMarker is low, the opposite. The 0.7 and 0.3 thresholds are DeMark’s defined reversal zones.
What separates DeMarker from RSI mechanically is that it focuses on highs and lows rather than closes. That makes it slightly more sensitive to intraday volatility and slightly less prone to staying pinned during strong trends.
How DeMarker Works on MT4
On MetaTrader 4, DeMarker plots in a sub-window with a single line oscillating between 0 and 1, plus horizontal levels at 0.7 and 0.3.
The two main signals are:
The 0.7 reversal — DeMarker climbing above 0.7 then turning back down. Bearish reversal warning. Take with confirmation (price action, S/R levels) on H4 or daily.
The 0.3 reversal — DeMarker dropping below 0.3 then turning back up. Bullish reversal warning.
Like RSI, DeMarker also produces divergence signals. Price makes a higher high, DeMarker prints a lower high — bearish divergence. Inverse for bullish. DeMark’s divergences fire less frequently than RSI’s but tend to be cleaner when they do appear.
Key Features
- Built into MT4 – Insert > Indicators > Oscillators > DeMarker
- Bounded 0-1 scale (different from RSI’s 0-100)
- Compares highs/lows rather than closes – more sensitive to intraday range
- Non-repainting once candles close
- Reversal-focused thresholds at 0.7 and 0.3
- Lightweight, runs alongside other indicators without overhead
Best Settings for DeMarker Indicator
| Parameter | Scalping (M5-M15) | Day Trading (H1) | Swing Trading (H4-D1) |
|---|---|---|---|
| Period | 9 | 14 | 14 or 21 |
| Upper Level | 0.75 | 0.7 | 0.7 |
| Lower Level | 0.25 | 0.3 | 0.3 |
Recommended starting point: Period 14 with 0.7/0.3 levels on H4 — DeMark’s intended setup.
Pros and Cons
| Pros | Cons |
|---|---|
| Cleaner reversal signals than RSI on H4 and daily timeframes | Less effective on shorter timeframes (M5 and below) |
| Highs/lows comparison less prone to staying pinned in strong trends | Bounded 0-1 scale takes adjustment if you’re used to RSI’s 0-100 |
| Built into MT4, non-repainting | Less popular than RSI/Stochastic, fewer pre-built strategies in trading literature |
| Effective for divergence signals on swing timeframes | Default thresholds (0.7/0.3) trigger less often than RSI’s 70/30 – patience required |
How to Install DeMarker on MT4
Step 1: Open MT4 and select your chart.
Step 2: Click Insert > Indicators > Oscillators > DeMarker.
Step 3: Set Period to 14. In the Levels tab add 0.7 and 0.3.
Step 4: Click OK and save as a template.
Trading Strategy: DeMarker Reversal with Trend Filter
Setup: DeMarker(14) with 0.7/0.3 levels on H4. 200 SMA on the same chart for higher-timeframe context.
Buy Signal:
1. Price is above the 200 SMA (long-term bullish bias)
2. DeMarker drops below 0.3 (oversold)
3. DeMarker crosses back above 0.3
4. Enter long when the next H4 candle closes higher
Sell Signal:
1. Price is below the 200 SMA
2. DeMarker rises above 0.7 (overbought)
3. DeMarker crosses back below 0.7
4. Enter short when the next H4 candle closes lower
Stop Loss: Beyond the recent swing extreme (40-80 pips on H4).
Take Profit: 1:2 R:R or trail by the 200 SMA.
The 200 SMA filter is what makes this work. Without it, you’ll take counter-trend reversals that get steamrolled. With it, you’re catching pullback entries aligned with the dominant move.
Frequently Asked Questions
Is the DeMarker indicator free?
Yes. Built into MT4 and the enhanced version below is also free.
Does DeMarker repaint?
No. Locks in once the candle closes.
What is the difference between DeMarker and RSI?
DeMarker compares highs/lows of consecutive bars; RSI compares closes. DeMarker is on a 0-1 scale with 0.7/0.3 reversal zones; RSI is on 0-100 with 70/30. DeMarker tends to be slightly cleaner on H4 and daily; RSI is more versatile across all timeframes.
Best timeframe for DeMarker?
H4 and Daily — that’s where DeMark designed the indicator to work best. On H1 it’s serviceable; on M15 and below it generates too many false signals.
Can I use DeMarker on MT5?
Yes. Built into MT5 with identical behaviour.
Download Enhanced DeMarker for MT4 – Free
The standard DeMarker works fine but the enhanced version adds:
- Multi-timeframe display – H4 and D1 DeMarker on your H1 chart
- Threshold alerts – popup, email, push when DeMarker crosses 0.7 or 0.3
- Divergence detection – automatic divergence drawing on the chart
Platform: MT4 (Build 1000+)
File type: .ex4
File size: 13 KB
Version: 2.0
Last updated: April 2026
Download the DeMarker Indicator – Free Instant Access
No payment. No catch. Enter your email below and the DeMarker Indicator file lands in your inbox within 60 seconds. Here’s everything you get:
- The non-repainting DeMarker Indicator file (.ex4) – install in 30 seconds
- Step-by-step installation guide with chart screenshots
- Best-performing settings for scalping, day trading, and swing trading
- The exact reversal entry rules I use in live trading
- Weekly trading insights from a developer with 16+ years of market experience
Download the DeMarker Indicator – Free Instant Access
No payment. No catch. Enter your email below and the DeMarker Indicator file lands in your inbox within 60 seconds. Here’s everything you get:
- The non-repainting DeMarker Indicator file (.ex4) – install in 30 seconds
- Step-by-step installation guide with chart screenshots
- Best-performing settings for scalping, day trading, and swing trading
- The exact entry and exit rules Dom uses in live trading
- Weekly trading insights from a developer with 16+ years of market experience
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Overall Rating: 4.2/5
| Category | Rating |
|---|---|
| Accuracy | 4.4/5 |
| Ease of Use | 4.0/5 |
| Features | 4.1/5 |
| Value | 4.4/5 |
Related Indicators
- RSI Indicator MT4 – The mainstream momentum oscillator that DeMarker complements
- Stochastic Oscillator MT4 – Two-line range oscillator for ranging markets
- Williams %R Indicator MT4 – Inverted Stochastic on -100/0 scale
- Best Oscillator Indicators for MT4 – The full ranked list
- How to Install Custom Indicators on MT4
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