DeMarker Divergence + Trend Filter (Swing Strategy)
A DeMarker divergence strategy with a trend filter to reduce false signals.
The one-line takeaway
DeMarker divergence looks for weakening demand.
Quick Answer
Quick Answer
DeMarker divergence looks for weakening demand: price makes a new high/low, but the DeMarker oscillator does not. Add a trend filter (like higher-timeframe MA) so you don’t counter-trend trade every divergence.
Rules
- Identify bias (H4/D1): trade only in direction of higher-timeframe bias unless you’re advanced.
- Divergence setup: Bearish: price higher high + DeMarker lower high. Bullish: price lower low + DeMarker higher low.
- Trigger: enter on structure break (lower high break for bearish, higher low break for bullish).
Risk
- Stop beyond divergence swing extreme
- TP at next structure level or fixed R (1.5R–2R)
FAQ
What does DeMarker measure?
Demand/pressure by comparing recent highs/lows to prior highs/lows, scaled 0–1.
Why do divergences fail?
Strong trends can ignore divergence for long periods—filters and triggers are essential.
Risk note
This article is for educational purposes only and does not constitute financial advice. Options and futures involve substantial risk and are not suitable for all investors. Use defined-risk structures, position sizing, and pre-planned exits.