An oscillator that attempts to identify tops and bottoms.
Overview
Also known as the TD DeMarker I compares price from one bar to the next and measure the level of price demand and attempts overcome the common shortcomings of traditional overbought / oversold indicators.
The TD Demarker I on the CAD/JPY Daily Chart 4/11/2011
Source: VT Trader
Interpretation
Overbought/oversold Conditions:
TD DeMarker I is an oscillator like the RSI, and is plotted with similar Overbought/Oversold lines at 70 and 30.
Trendlines: Signals can be generated when indicator crosses trendlines that connect the peaks or lows. A break above a trendline suggests swinging to bullish momentum or a even a stronger bullish momentum breakout. A break below a trendline suggests swing to bearish momentum an even stronger bearish momentum breakout.
Divergence: As with any oscillator, divergences suggest a lost of momentum and hints at a reversal.
