DayDeMarker Indicator
Platform: MT4 Type: Oscillator Last update: September 28, 2024The DayDeMarker Indicator is a custom forex oscillator that works to identify potential overbought/oversold areas of the market. These areas offer good entry points for swing trades. That gauge uses a unique formula for its calculations, therefore works in a different manner than most oscillators.
Anatomy of the DayDeMarker Indicator
The DayDeMarker Indicator provides two important levels, namely 0.7 and 0.3. When the oscillator rises above 0.7 level, it means the market is considered overbought and a trader should look for a sell opportunity. On the other hand, when this DayDeMarket falls below 0.3 it means the market is considered oversold and a trader should look for buy opportunity.
Buy Signal
Follow these steps for a long trade:
- DayDeMarker Indicator value drops below oversold level (0.3 level) and then reverse back above it
- Price swings higher from recent low swing
- Buy trade is triggered after the above conditions are met
- Set stop loss a few pips below the last swing low of the market
- Take profit or exit trade whenever Risk:Reward ratio is 1:1 or better, or use own method of trade exit
You can use Moving Average for trend direction assignment and then open trades in the corresponding direction. This is a buy trade example with 100-period EMA:
Sell Signal
Follow these steps for a short trade:
- DayDeMarker Indicator value rises above overbought level (0.7 level) and then reverse back below it
- Price swings lower from recent high swing
- Sell trade is triggered after the above conditions are met
- Set stop loss a few pips above the last swing high of the market
- Take profit or exit trade whenever Risk:Reward ratio is 1:1 or better, or use own method of trade exit
Similarly, you can use Moving Average for trend direction assignment and then open trades in the corresponding direction. This is a sell trade example with 100-period EMA:
