DeMarker Forex Indicator (MT4)

About the DeMarker Indicator

The DeMarker (DeM) indicator is a momentum oscillator built to spot market exhaustion and early reversal points by comparing recent price action with prior bars.

This MT4 version is tuned for Forex: adjustable period, overbought/oversold shading, automatic divergence markers, and configurable alerts (popup, email, push).

Traders use DeMarker to detect pullback entries inside a trend, confirm breakouts, and highlight hidden or regular divergence for higher-probability reversals.

Best practice: combine DeMarker signals with a higher-timeframe trend filter (for example, EMA200 on H4/D1) and disciplined risk management before taking live trades.

Key Features

• Classic DeMarker oscillator with user-adjustable period.
• Automatic bullish and bearish divergence markers.
• Optional EMA trend filter to avoid counter-trend trades.
• Low CPU footprint — suitable for multiple charts.
• Works on all Forex majors, metals, and indices in MT4.

Free Download

Download the “DeMarker.mq4” indicator for MT4

Indicator Example Chart (EUR/USD H1)

The following chart demonstrates how the DeMarker MT4 indicator works in real trading conditions.

How To Trade Using This Indicator

• Open a buy trade when the DeMarker indicator reaches the 0 value and the overall trend is upwards.
• Open a sell trade when the DeMarker indicator reaches the 1 value and the overall trend is downwards.

The DeMarker Elite Scalper MT4 Strategy

This strategy combines the DeMarker indicator with the Elite PRO Scalper indicator to create a robust and reliable system for short-term trading.

It’s designed for traders who want to capitalize on short-term market movements.

The system is effective on any currency pair and is best suited for time frames from M1 to M15.

The strategy’s synergy lies in using the Elite PRO Scalper for precise entry signals while the DeMarker indicator confirms the overbought or oversold conditions, adding an extra layer of confirmation.

This approach helps filter out false signals and improves the probability of a successful trade.

It is particularly effective during the London and New York trading sessions when market volatility is highest.

Buy Entry Rules

• A blue buy arrow appears on the chart from the Elite PRO Scalper indicator.
• The DeMarker indicator is at or below the 0.0 level, confirming an oversold condition.
• Stop Loss: Place it just below the most recent swing low.
• Take Profit: Aim for a fixed 5-15 pips.

Sell Entry Rules

• A red sell arrow appears on the chart from the Elite PRO Scalper indicator.
• The DeMarker indicator is at or above the **1.0 level**, confirming an overbought condition.
• Stop Loss: Place it slightly above the most recent swing high.
• Take Profit: Aim for a fixed 5-15 pips.

Advantages

• Clear Signals: The combination of both indicators provides very clear and non-repainting signals, which reduces confusion and guesswork. The arrows from the Elite PRO Scalper make it simple to identify potential trades.
• Improved Reliability: Using the DeMarker indicator as a filter helps to confirm the signals from the Elite PRO Scalper. This reduces the number of false signals and increases the accuracy of your trades.
• Suitable for All Levels: This strategy is easy to learn and implement, making it ideal for new traders. At the same time, its effectiveness appeals to seasoned traders looking to add a reliable scalping system to their arsenal.

Drawbacks

• Requires Discipline: Scalping requires quick decision-making and strict adherence to stop loss and take profit rules. Failure to do so can result in significant losses.
• Risk of Slippage: In fast-moving markets, the execution price can differ from the requested price, leading to slippage. This can be particularly impactful on small pip targets.
• Not for All Market Conditions: The strategy may not perform well during low-volatility periods or when the market is consolidating. It is best used during liquid sessions.

Case Studies

Case Study 1: Buy Trade

On a 5-minute chart for EUR/USD, a blue buy arrow appeared from the Elite PRO Scalper.

Simultaneously, the DeMarker indicator’s signal line was at the 0.05 level, confirming the oversold condition.

A buy trade was executed. A stop loss was placed 10 pips below the entry, and the take profit was set for 15 pips.

The price moved up swiftly, and the trade was closed for a quick profit within minutes.

The confluence of both signals provided a high-probability entry.

Case Study 2: Sell Trade

On a 15-minute chart for GBP/JPY, a red sell arrow was generated by the Elite PRO Scalper.

At the same time, the DeMarker indicator was at 1.02, indicating an overbought market.

A sell position was opened. The stop loss was placed 12 pips above the entry, and the take profit was set at 10 pips.

The price immediately dropped, hitting the take-profit target.

This example demonstrates how the indicators work together to identify strong reversal points after an extended trend.

Strategy Tips

• Time Management: Focus on trading during the London and New York sessions when liquidity and volatility are highest. This is when the indicators are most effective.
• Practice on a Demo Account: Always test this strategy on a demo account first. This allows you to become familiar with the indicator signals and the strategy’s rules without risking real capital.
• Risk Management: Use a fixed lot size and risk only a small percentage of your trading account on each trade. This protects your capital during losing streaks.
• Stay Updated: Always be aware of major economic news releases, as they can cause unexpected market spikes and lead to false signals.

Download Now

Download the “DeMarker.mq4” indicator for Metatrader 4

Indicator Specifications

FAQ

1. Which timeframe gives the most reliable signals?

H1–D1 gives the most reliable swing signals. For intraday use, M15–H1, but confirm with a higher timeframe trend.

2. How to reduce false alarms in ranging markets?

Use an EMA filter and only take signals aligned with the trend. In choppy prices, focus on divergence trades.

3. Can DeMarker be used alone?

Yes, but combining with EMA and ATR improves win rate and reduces false entries.

4. Which indicators pair well with DeMarker?

EMA (50/200), ATR, RSI, or MACD histogram. Combine with price action at support/resistance.

5. How should I size positions?

Risk 0.5–1% per trade. Use ATR or swing-based stops to calculate lot size.

Summary

The DeMarker Forex Indicator for MT4 is a momentum oscillator that identifies overbought and oversold conditions, highlights divergence, and helps time high-probability entries.

It includes adjustable settings, configurable alerts, and an optional EMA trend filter to reduce false signals.