You can now download the Range Expansion Index indicator for free on AtoZ Markets indicators gallery.
Range Expansion Index (MetaTrader indicator) is a relative oscillator indicator that measures the pace of the price changes and signals overbought/oversold states if the price demonstrates weakness or strength. It was developed by Tom DeMark and explained in his book The New Science of Technical Analysis. The value of the indicator changes from -100 to +100. REI is an enhanced oscillator because it tries to remain calm during the range trading and indicates signals only when the significant peaks or bottoms are spotted. You can download this indicator both for MT4 and MT5.
REI_Period (default = 8) — the period of the indicator. Increase the value for less but more precise signals. Decrease it for more but inaccurate signals. It’s not recommended to change this parameter.
How to trade with Range Expansion Index
Tom DeMark suggested using the default period of 8. When the price goes above level 60 and the declines below it, the bearish signal is given. When the price goes below level -60 and then rises above it, the bullish signal is given. I find this indicator rather inaccurate (like all oscillators), but on the lower timeframes it can be quite useful.
How to download and install an indicator
In order to install the indicator on your MT4 or MT5 platform, you need to follow these steps:
- Click on the “Download Indicator” button located at the bottom of the screen.
- Save the file to your computer.
- Extract and move the files into the MT5>Indicator folder of the MetaTrader4 software file directory.
- Restart your Metatrader platform.
- Navigate to “Indicators.”
- And select the “Range Expansion Index” template to apply it on the chart.
Note: This indicator was developed by a third party. AtoZ Markets does not carry any copyrights over this trading tool.