DeMarker (DeM) Indicator — Indie v5

Educational Version for GitHub & TradingView Language: Indie Script v5 — Designed for the TakeProfit trading platform Category: Momentum Oscillator / Trend Exhaustion Detection

What Is the DeMarker Indicator?

The DeMarker (DeM) is a classic momentum oscillator that compares recent highs and lows to identify potential market exhaustion and trend reversal zones. It works well in both ranging and trending conditions when used with confirmation tools.

Algorithm & Logic

The DeMarker measures buying and selling pressure as follows:

Upward movement (DeMax): Difference between the current high and previous high (if positive).
Downward movement (DeMin): Difference between previous low and current low (if positive).
These values are accumulated over a period (default: 14) using a sliding sum.
The DeMarker value is then calculated with the formula:

textCopyEditDeMarker = Sum(DeMax, period) / [Sum(DeMax, period) + Sum(DeMin, period)]

This normalizes the result between 0 and 1.

Interpretation Guide

📈 Above 0.7 → Overbought: possible trend exhaustion, look for reversal
📉 Below 0.3 → Oversold: market may bounce or reverse upward
⚖️ Between 0.3–0.7 → Neutral: trend likely to continue

Combine with RSI, MACD, or price action (support/resistance zones) for best results.

Indie V5 source code

# indie:lang_version = 5
# education purpose
# © 2025 Pavel Medd (@pavelmedd)
# Licensed under the MIT License. You may use, copy, modify, merge, publish, 
# distribute, sublicense, and/or sell copies of the Software, subject to the 
# conditions of the MIT license. Full license text: https://opensource.org/licenses/MIT

from indie import indicator, plot, color, MutSeriesF
from indie.algorithms import Sum

@indicator('DeMarker')
@plot.line(color=color.BLUE, id='#plot_0')
def Main(self):
    period = 14  # DeMarker's standard period

    # Create a series to store the differences
    high_diff = MutSeriesF.new(0)
    low_diff = MutSeriesF.new(0)

    # Fill the series with values
    if self.high[0] > self.high[1]:
        high_diff[0] = self.high[0] - self.high[1]
    if self.low[0] < self.low[1]:
        low_diff[0] = self.low[1] - self.low[0]

    # Use Sum to sum over the period
    sum_high = Sum.new(high_diff, period)[0]
    sum_low = Sum.new(low_diff, period)[0]

    # Calculate DeMarker
    dem = sum_high / (sum_high + sum_low) if (sum_high + sum_low) != 0 else 0

    return plot.Line(dem)

Pine Script 6 source code

//education purpose
//© 2025 Pavel Medd (@pavelmedd)
//Licensed under the MIT License. You may use, copy, modify, merge, publish, 
//distribute, sublicense, and/or sell copies of the Software, subject to the 
//conditions of the MIT license. Full license text: https://opensource.org/licenses/MIT
//@version=6
indicator("DeMarker", overlay=false)

// Input for the period
period = 14

// Compute differences
high_diff = high > high[1] ? high - high[1] : 0
low_diff = low < low[1] ? low[1] - low : 0

// Compute the sum over the period using manual summation (since `ta.sum()` doesn't exist)
sum_high = math.sum(high_diff, period)
sum_low = math.sum(low_diff, period)

// Calculate DeMarker
dem = (sum_high + sum_low != 0) ? sum_high / (sum_high + sum_low) : 0

// Plot the DeMarker indicator
plot(dem, color=color.blue, title="DeMarker")