Wed. Jun 12th, 2024

Understanding the Demark 9 indicator on tradingview

The Demark 9 Indicator is a popular technical analysis tool used by traders to identify potential trend reversals in financial markets. Developed by Tom DeMark, this indicator helps traders anticipate potential turning points in price movements. In this article, we will explain what the Demark 9 Indicator is, how it works, and how you can use it effectively on TradingView.

What is the Demark 9 Indicator?

The Demark 9 Indicator is based on the idea that markets move in cycles and that price exhaustion points can be identified at the end of these cycles. It consists of a series of 9 consecutive price bars that determine potential market reversals. When the indicator reaches a certain condition, it suggests that a new trend may begin.

How Does the Demark 9 Indicator Work?

The Demark 9 Indicator uses a combination of price action and time-based criteria to identify potential reversals. It consists of two main components: Setup and Countdown.

The Setup phase occurs when a price bar’s low is lower than the low of the previous bar, and the high is higher than the high of the bar before that. This indicates that the market might be getting ready for a reversal.

Once the Setup phase is complete, the Countdown phase begins. During this phase, the indicator scans for a specific sequence of price bars until it reaches the 9th bar. Once the Countdown phase is complete and the indicator reaches the 9th bar, it suggests a potential trend reversal.

Using the Demark 9 Indicator on TradingView

TradingView is a popular platform among traders and offers a wide range of technical analysis tools, including the Demark 9 Indicator. To use this indicator on TradingView, follow these steps:

  1. Open the TradingView platform and choose the desired market or financial instrument that you want to analyze.
  2. Click on the “Indicators” button at the top of the screen.
  3. In the search box, type “Demark Sequential” or “Demark 9 Indicator” and select it from the list of available indicators.
  4. The indicator will be added to your chart, and you can adjust the settings according to your preferences.
  5. Interpret the indicator’s signals to make informed trading decisions. A signal to sell may occur when the Countdown phase reaches the 9th bar and suggests a potential trend reversal, while a signal to buy may occur when the indicator reaches the end of a downtrend and starts a new Setup phase.

Conclusion

The Demark 9 Indicator is a powerful tool that can help traders identify potential trend reversals in financial markets. By understanding how it works and using it effectively on TradingView, traders can gain valuable insights into market cycles and make informed trading decisions. Remember, like any other technical analysis tool, it is important to use the Demark 9 Indicator in conjunction with other indicators and analysis techniques for better accuracy and confirmation of signals.

By admin