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DeMark Analysis and Range Extension Index Signals

Made by Tom DeMark.

DeMarks used the Range Expansion Index to trade options in his plan. This trading tool is a type of indicator called an oscillator.

DeMark Range Expansion Index Trade Indicator - DeMark Range Extension Index Trading Indicator Analysis

DeMark Range Expansion Index

The Oscillator Indicator functions as a timing tool in trading. It addresses challenges associated with exponentially calculated oscillators, which often lag due to their arithmetic-based computation. This indicator seeks to provide more accurate market signals.

FX Analysis and How to Generate Trading Signals

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

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

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

DeMark Range Expansion Index Analysis

Overbought & Over-sold Levels on Indicator

Exit signals, as per DeMark's guidelines, discourage trading during extreme overbought conditions signified by six or more bars above +45. An exit for buy signals is triggered six bars after the price reaches +45.

Exit signals come from extreme oversold spots. Six or more bars below -45 trigger shorts to close.

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