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

Developed by Tom DeMark.

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

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 & these indicators tend to lag the stock index market.

Stock Indices Technical Analysis & Generating Indices Signals

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

Overbought Zones - Readings of +45 or higher indicates over bought conditions.

Over-sold Levels - Readings of -45 or lower indicates oversold conditions.

Overbought & Oversold 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 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.