DeMark Analysis and Range Extension Index Signals
Developed by Tom DeMark.
DeMarks used the Range Expansion Index to trade options, in his strategy. This trading indicator is an oscillator indicator.
DeMark Range Expansion Index
This Oscillator Technical is used as a market timing oscillator trading which attempts to overcome the problems of exponentially calculated oscillators indicators, which are calculated arithmetically and these trading indicators tend to lag the market.
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 indicates over bought conditions.
Oversold Zones - Readings of -45 or lower reflects over-sold conditions.
Overbought & Over-sold Levels on Trading Indicator
Exit Signals - DeMarks advises against trading in extreme over-bought conditions indicated by 6 or more bars above +45, exit for buy signals is generated six bars after price hits +45.
Exit Signals - extreme oversold conditions indicated by 6 or more bars below the -45 thresholds will generate exit trading signal for short trade transactions.
Learn More Tutorials and Courses:
- Aroon Trade Forex Robot Expert Advisor
- How Can I Trade SX 50 Strategy?
- Learn Trade Forex Basics Concepts
- List of Top Australia Forex Trading Brokers
- MetaTrader FRA 40 Index FRA 40 MetaTrader 4 Forex Trading Software/Platform
- Transforming Your XAUUSD Psychology and Mindset When Trading
- What is a Gold Margin Trade Account?
- How to Set Zigzag Technical Indicator in XAUUSD Chart on MetaTrader 4 Software
- MACD Technical Analysis Summary
- How to Find and Get MT4 NOK JPY Chart