DeMarks Technical Analysis & Range Expansion Trading Signals

Developed by Tom DeMark.

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

DeMarks Range Expansion Index

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

Technical Analysis and How to Generate Trading Signals

This Oscillator Indicator commonly oscillates between the values of -100 to +100.

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

Oversold Zones - Readings of -45 or lower indicates over-sold conditions.

Over-bought and Oversold Levels on Indicator

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

Exit Signals - extreme oversold conditions indicated by six or more price bars below the -45 thresholds will generate exit trading signal for short trade transactions.

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