Registration is required to ensure the security of our users. Login via Facebook to share your comment with your friends, or register for DailyForex to post comments quickly and safely whenever you have something to say.
Log in Create a DailyForex. Want to get in-depth lessons and instructional videos from Forex trading experts? Register for free at FX Academy, the first online interactive trading academy that offers courses on Technical Analysis, Trading Basics, Risk Management and more prepared exclusively by professional Forex traders.
Report Broker Scams Forex Widgets. Tom DeMarker invented his Forex technical indicator DI to help identify new selling and buying opportunities. The DI has many similarities to the indicators designed by Welles Wilder. During the design process, DeMarker attempted to solve the many problems associated with similar Forex tools used to determine oversold and overbought conditions. Fundamentally, the DI traces the market sentiment of a currency and compares its present value to that of the previous selected time-period.
As such, you can use the DI to determine the market interest in a currency which will help you identify tops and bottoms. The DI does not filter its data and you will find that this indicator is very useful in detecting new entry and exit opportunities.
There are two variants of the DI although they both utilize the same formula. When you use the 0 to 1 DI, you must realize that readings above 0.
You can use this knowledge to help you identify buying and selling possibilities. The DI has, in fact, developed a good reputation for achieving such results under any market conditions. You can also utilize the DI to assist you in distinguishing between breakouts and fakeouts as it has achieved a much better track record of performing this task then its rivals. The formula behind the DI makes its very effective at detecting true price reversals which it can readily do on intra-day time frames and above.
Basically, the DI calculates the difference between the current price value and that of the previous time frame. The value is recorded if the result is positive otherwise it is zeroed. The sum of all these values over a selected time-period is then divided by the lowest price value recorded. The DI has gained such a good reputation for reliability that many traders rely on it solely to advise them about possible new trade opportunities.
Sign Up Read Review. Free Forex Trading Courses Want to get in-depth lessons and instructional videos from Forex trading experts? Sign up to get the latest market updates and free signals directly to your inbox. Enter your email address here:More...