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 & How to Generate Signals

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

Over-bought Levels - Readings of +45 or higher indicates over bought conditions.

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

Overbought and Over-sold Levels on Technical Indicator

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

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

Study More Topics & Lessons:

• Bollinger Band: Fib Ratios Indices Indicator Analysis
• Grid, Volumes, AutoScroll & MetaTrader 4 Chart Shift on MT4 Platform
• Trade Nasdaq Stock Index Trade Strategy
• How Can I Add SPAIN35 on MT4 Android Phone Trade App?
• SX 50 Trade Strategies Guide