The VIX Guy
The DeMark 9 indicator can predict short-term market tops and bottoms, and is easy to use for beginners. It compares current and past prices to show trends. You should only buy or sell based on the indicator if the stock is in a clear uptrend or downtrend. The creator of DeMark 9, Tom DeMark, previously worked for Paul Tudor Jones and Steve Cohen. You can add the DeMark 9 indicator to your charting platform for free by contacting the speaker.
How to Predict Market Tops and Bottoms with the DeMark 9 Indicator
Introduction
As investors, we all have experienced the ups and downs of the market. It’s difficult to predict the exact timing when the market will rise or fall, but what if there was a magical indicator that could predict these market movements? In this article, we’ll introduce you to the DeMark 9 Indicator, which is used by legendary traders like Steve Cohen and Paul Tudor Jones. We’ll explain how it works, its power as a leading oscillator indicator and how traders and investors can use it to make better trading and investment decisions.
DeMark 9 Indicator: The Power It Holds
The DeMark 9 Indicator is a powerful tool used in technical analysis. It can help you to determine the short term market tops and bottoms. This indicator shows us where exactly the potential swing highs and lows are. We can use these levels to buy the dips and sell the tops. By using this indicator, you can identify when the stock price is overheated and when to avoid trading in the stock.
Here’s an example of how this indicator can be used: Let’s take a look at Square, one of the hottest stocks recently. When we apply this indicator to the chart, we can clearly see when exactly the short term market tops are. In technical analysis, we call such short term tops the Swing Highs. This indicator shows us where exactly the potential Swing Highs are.
Similarly, when there is a Swing Low, it’s the best time to enter a trade or add more shares to your existing positions. This is why this indicator is so effective – it helps investors make proper decisions by providing clear signals for when to buy and sell.
How DeMark 9 Works
The DeMark 9 Indicator compares the current candlestick’s closing price to the closing price of the candlestick four days ago. If the current closing price is higher than four days ago, it’s considered Bullish, and it will be marked with a green number. Conversely, if the current closing price is lower than four days ago, it’s considered Bearish, and it will be assigned with a red number. The number shows how many days in a row the market has closed above or below the price four days ago.
The most important number to look for is nine. It’s the number that shows the short term overbought or oversold conditions in the market, which are the Bullish Number Nine and the Bearish Number Nine, respectively.
For example, if there is a Bearish Number Nine showing up in the chart, it indicates there have been nine days in a row that the daily closing price was lower than its four days ago. This is a significant short term oversold signal and usually indicates a potential market bottom. Conversely, if there is a Bullish Number Nine showing up in the chart, it indicates the stock is short term overheated, and we should expect a pullback soon. This signal should prompt investors to be cautious and avoid entering new trades or adding positions.
Implementing DeMark 9 Indicator
If you want to add the DeMark 9 Indicator into your charting platform, all you need is the source code. These are the codes we’re currently using with a few alterations. For example, we only display the numbers seven and eight, and for Number Nine, which is the most important number, we changed it to an emoji icon for easier visualization.
Before adding this indicator to your platform, it’s crucial to analyze the current trend of the market you are trading. If the stock is in a clear uptrend, you should only look for buy signals. If it’s in a clear downtrend, you should look for sell signals. Betting against the trend could lead to poor financial decisions, so tread with caution.
Final Thoughts
The DeMark 9 Indicator is a powerful tool that can help traders and investors make better trading and investment decisions by identifying short term tops and bottoms. Investors should use the current market trend as a guide when implementing this indicator into their platform. By following these guidelines and applying the DeMark 9 Indicator, investors can become more informed and strategic in their trades and investments.
