DeMarks Metals Analysis & Range Expansion Index Trading Signals

Developed by Tom DeMark.

DeMark used the Range Expansion Index to trade options, in his strategy. This metals indicator is an oscillator.

DeMark Range Expansion Index

This Oscillator is used as a market-timing oscillator which attempts to overcome problems with exponentially calculated oscillators, which are calculated arithmetically and these indicators tend to lag the metals trading market.

Metal Trading Analysis & Generating Trading Signals

This Oscillator typically oscillates between values of -100 to +100.

Over-bought Zones - Readings of +45 or higher indicates overbought conditions.

Over-sold Levels - Readings of -45 or lower indicates over-sold conditions.

Overbought & Oversold Levels on Technical Indicator

Exit Trading Signals - DeMark advises against trading in extreme overbought conditions indicated by six bars above +45, exit for buy metals trading signals is generated six bars after metals price hits +45.

Exit Trading Signals - extreme oversold conditions indicated by six or more bars below the -45 thresholds will generate exit signal for short trades.