DeMarks Oil Technical Analysis and Range Expansion Index Trading Signals

Developed by Tom DeMark.

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

DeMarks 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 oil market.

Crude Oil Trading Technical Analysis & Generating Trading Signals

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

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

Oversold Areas - Readings of -45 or lower indicates oversold conditions.

Overbought & Oversold Levels on Technical Indicator

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

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