Forex encyclopedia

In their trading on the Forex market, most part of traders apply various tools, which are able to assist them in decision making. For example, Murray levels have been an instrument applied by traders for a long period of time. Unfortunately, not all traders handle Murray levels properly. Originally, Gann theory (Gann squares) were put on the ground of building the Levels. In the beginning of trading, one puts square on chart. Borders of square will signalize about beginning and end of existing tendency. Murray levels are used by traders on various time-frames. But the most significant levels are still long time-frames. Repeated character of market underlies building of ML, which imply drawing of twelve horizontal lines with each of them serving as an important level. (Pic. 1) Levels of greatest importance are the bottom and upper levels – 0 and 8.

DeMarker Indicator is the technical indicator matching current High with the previous Highs. For the first time the indicator was published in the book by Thomas DeMark called "The New Science of Technical Analysis". Originally Mr. DeMark wondered if it is possible to create such a technical instrument that would have no drawbacks that feature the most part of popular indicators. In his book the author introduces indicator as overbought/oversold index with zones showing attenuation of price.