The Marker Indicator is a study which is intended to predict trend reversals based on changes of High and Low prices. It finds two differences: between the current High price and its previous value and between previous Low and its current value. If the difference is negative, zero is taken instead.
After that, 8 period SMA is applied to each difference; the final result is percent ratio of the higher average to the sum of both.
It is considered a signal for a bullish reversal when values fall below 30; bearish reversal might be expected if the indicator surpasses the 70 level.
||The Marker Indicator plot.|
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.