DeMarks Oil Technical Analysis & Range Expansion Index Oil Trading Signals

Developed by Tom DeMark.

DeMark used the Range Expansion Index to trade options, in his trading strategy. This oil 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 crude oil market.

Crude Oil Technical Analysis & How to Generate Oil Trading 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 and Oversold Levels on Crude Oil Indicator

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