Range Expansion Index is a technical indicator, namely, an oscillator fluctuating from -100 to +100, and can be applied on any currency pair or commodity market. The index was developed by Thomas DeMark and presented in his book “The New Science of Technical Analysis.”
How to Use DeMark Range Expansion Index
The Range Expansion index can be used in any timeframe as an additional oscillator indicating price extremes. The main indicator levels to look for are 60 and -60. Index move above the primer level indicates overbought market, while below -60 suggest oversold. The indicator remains in the neutral zone between the two levels during a flat market. If the indicator is used below H4 time-frames, the default settings are recommended to be increased from 8 to 12 in order to reduce false signals and noise.
Trading based on the Range Expansion Index signals should also include a filter. This could be an Ahoora trend indicator or a simple 50 period moving average. Using the 50 MA, the following trading could be applied: – A short position can be opened if Range Expansion Index generates the extreme above the +60 level with the 50 SMA sloping downwards. – A long position can be opened if REI generates the extreme below the -60 level with the 50 SMA sloping upwards. Such trend filter reduces the total number of deals almost by one third. This has a positive effect on the profitability of the index.
How to Install DeMark Range Expansion Index
How to install your indicator on MT4 platform:
1. Click on Download button below;
2. Save the file to your computer;
3. Move the .ex4 file into the following folder : meta traderexpertsindicators;
4. Restart your Metatrader platform;
5. Click “Indicators” button in Metatrader toolbar;
6. Select “Custom”;
7. Search and select “Range Expansion Index”;
8. Adjust settings or press OK to add the indicator to your selected chart;
Note: Range Expansion Index is developed by Thomas DeMark and was sent by an AtoZ Markets follower from the United Kingdom, Ross. AtoZ Markets does not carry any copyrights over this trading tool.
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