The DeMarkerBB is specific trend indicator which based on DeMarker (DM) and BollingerBands (BB) indicators. As simple DM, it shows the places of the price exhaustion. The BB is calculated on the basis of DM and is added for easy readability overbought and oversold areas. Also there are the signal line (default orange) which is a MA of DeMarker.
Signals. When indicator (default blue) line is higher than 0.7, prices are expected to turn down. And when it is lower than 0.3, prices are expected to turn up.
Bear in mind, the "Smoothing parameter" value varies in the meaning depending on algorithm:
- JMA has smoothing parameter gap -100/+100
- T3 smoothing parameter is multiplied by 100 for better visualization
- Smoothing parameter for VIDYA is CMO period
- Smoothing parameter for AMA is a slow EMA period