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DeMarks Stock Indices Technical Analysis and Range Expansion Index Stock Indices Signals

Developed by Tom DeMark.

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

DeMark Range Expansion Index Technical Stock Indices Indicator

DeMark Range Expansion Index

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

Stock Indices Technical Analysis and Generating Stock Indices Signals

This Oscillator 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 oversold conditions.

Overbought Levels and Oversold Levels

Overbought and Oversold Levels

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

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