DeMark Indicators: 40

The Bloomberg Market Essentials¿: Technical Analysis Series profiles the most popular tools and explains how to use them effectively. The DeMark indicators are sophisticated standalone market-timing tools, but they can also be used with more traditional technical studies such as: Moving averages Momentum oscillators Trendlines Fibonacci retracements Elliott wave Differentiating between trading ranges and trend exhaustion is a problem that has long plagued traders in every market sector. In a sea of pre-dominantly trend-following technical studies, one set of contrarian market-timing indicators stands out from the rest, precisely because it is predictive: DeMark indicators were designed specifically to anticipate trend reversals. Their creator, Tom DeMark, has served as consultant to such revered money managers as George Soros, Paul Tudor Jones, and Steven A. Cohen.