Forex encyclopedia

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.

Parabolic SAR is the technical indicator developed by Welles Wilder for analyzing trend movements. The first time it was announced in a famous book “ New Concepts in Technical Trading Systems” published in 1976. SAR stands for as “stop and reverse”. Parabolic SAR is one of a few indicators that signalize about closing of positions. In many respects Parabolic is similar to a moving average with the only difference that SAR can change position against price. Under ascending tendency, the indicator is drawn under prices (candles, bars), under descending tendency it is put above prices. When price crosses Parabolic line, reversal of the indicator takes place.