DeMarks Oil Technical Analysis & Range Expansion Index Trading Signals

Developed by Tom DeMark.

DeMark used the Range Expansion Index trading indicator 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 Trading Signals

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

Over-bought Zones - Readings of +45 or higher indicates overbought conditions.

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

Overbought and 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 signals is generated six bars after crude trading 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.