DeMarks Technical Analysis & Range Expansion Index Signals

Created by Tom DeMark.

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

DeMarks 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 & these indicators tend to lag the market.

Technical Analysis & How to Generate Signals

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

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

Oversold Levels - Readings of -45 or lower indicates oversold conditions.

Overbought and 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 signals is generated six bars after crude trading 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.