DeMarks Bitcoin Trading Analysis & Range Extension Index Trading Signals
Developed by Tom DeMark.
DeMark used the Range Expansion Index indicator to trade options, in his trade strategy. This btcusd indicator is an oscillator.
DeMark Range Extension Index
This Oscillator is used as a market timing oscillator which attempts to overcome the problems of exponentially calculated oscillators indicators, which are calculated arithmetically and these indicators tend to lag the btcusd market.
BTCUSD Analysis & Generating Signals
This Oscillator Technical typically oscillates between values of -100 to +100.
Overbought Levels - Readings of +45 or higher indicates overbought conditions.
Oversold Levels - Readings of -45 or lower indicates over-sold conditions.
Overbought & Over-sold Levels in Indicator
Exit Signals - DeMarks advises against trading in extreme over-bought conditions indicated by 6 or more price bars above +45, exit for buy signals is generated six bars after btcusd price hits +45.
Exit Signals - extreme over-sold conditions indicated by 6 or more bars below the -45 thresholds will generate exit signal for short trade positions.
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