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@@ -13,9 +13,7 @@
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| **PineScript** | [dem.pine](dem.pine) |
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- DEM (DeMarker Oscillator) is a bounded [0, 1] momentum oscillator that measures sequential demand pressure by comparing each bar's high and low aga...
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- Parameterized by `period` (default 14).
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- Output range: Varies (see docs).
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- Requires `period + 1` bars of warmup before first valid output (IsHot = true).
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- **Similar:** [MACD](../../momentum/macd/Macd.md), [AO](../ao/Ao.md) | **Complementary:** Volume | **Trading note:** DeMarker; compares current high/low to previous. Overbought >0.7, oversold <0.3.
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- Validated against TA-Lib, Skender, and Tulip reference implementations where available.
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DEM (DeMarker Oscillator) is a bounded [0, 1] momentum oscillator that measures sequential demand pressure by comparing each bar's high and low against the previous bar's high and low. It isolates bullish demand momentum in the numerator and bearish supply pressure in the denominator, then normalizes their ratio with SMA smoothing over a configurable period. Values near 0.7 signal overbought exhaustion; values near 0.3 signal oversold exhaustion. Neither external library in common use (TA-Lib, Skender, Tulip, Ooples) implements DeMarker, so self-consistency tests against batch/streaming/span modes serve as the primary validation.
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@@ -206,4 +204,4 @@ Validation relies on self-consistency checks:
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- DeMark, Tom (1994). *The New Science of Technical Analysis*. John Wiley & Sons. ISBN 0-471-03548-3.
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- DeMark, Tom (1997). *New Market Timing Techniques*. John Wiley & Sons. ISBN 0-471-14970-5.
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- Colby, Robert W. (2003). *The Encyclopedia of Technical Market Indicators* (2nd ed.). McGraw-Hill. Entry: "DeMark Indicators."
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- Pring, Martin J. (2002). *Technical Analysis Explained* (4th ed.). McGraw-Hill. Chapter on oscillator construction methodology.
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- Pring, Martin J. (2002). *Technical Analysis Explained* (4th ed.). McGraw-Hill. Chapter on oscillator construction methodology.
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