Trend definition with Demark indicators The Demark trading method provides insight into the current trend and its likely exhaustion point. The Demark analysis has proven particularly useful in identifying trend climaxes. Accurate end-of-trend detection can also help catch the beginning of a new trend. Forex traders can use Demark research in both contrarian and trend-following strategies. Tom Demark indicators (TD indicators) are not well known among Forex traders. Many forex traders may have never heard of this research. One reason is that compared to other indicators like MACD, RSI, Stochastic, etc., there is less information on Demark's work available. To calculate the DeMarker indicator's value, compare the current period's maximum and minimum prices to the prior period's similar prices. The indicator uses this comparison to measure the market's directional bias. It also shows overbought and oversold circumstances and attempts to determine trend exhaustion points. The initial indication did not use smoothing and was based on technical analyst Tom DeMark's ideas. As they’ll see, the MetaTrader 4 version uses simple moving averages to smooth component values. The indicator was designed for daily price bars, but as it uses relative price data, it should work for any time frame.