e2e4mfck

[e2] Range Expansion Index

The Range Expansion Index ( REI ) oscillator is based on Tom Demark's studies and described in "DeMark on Day Trading Options" book.

Range Expansion Index is an oscillator which compares current intraday highs and lows with the high and low of two bars ago.
The indicator oscillates between +100 and - 100, Default overbought and oversold conditions are 45/-45 respectively.

It was designed to avoid the pitfalls and complaints associated with other widely used and popular oscillators so that more accurate range trading executions can be made.

If REI (blue solid line) is in overbought / oversold condition for less then 5 bars and crosses the signal (red solid line) in the extreme area, this suggests a price reversal.
However if REI stays in the ob/os zone for more then 5 bars, it will print a "6" and this suggests the recent market move is strong and likely to continue.

The OS/OB zones will be highlighted if both REI and Signal enter an extreme zone reading.

daily*tip: Properly getting out of a position is as important as properly getting in. (c) Larry Connors
Stay safe ;)
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Want to use this script on a chart?
Pisces swimming through the river
All their life against the stream
Searching for a hook to catch on
And see their sun beam
Then suffocate in painful tortures
On cutting tables of callous men
Under a knife of handsome butchers
Emeralds are ripped away

Comments

anyone else finds the signal doesn't work that well on the daily TF?
Reply
hey, you do great work. i have access to this indictor from demarks service, the readings are very different, what this intentional??
Reply
dreadnought11 freemarketBTC
@freemarketBTC, are you using CQG ?
Reply
Hi e2, quick question. In your functions you have an _s1 variable. How does one know what that is defined as? I thought it was a built in variable but found nothing about it. Thanks!
Reply
It is different than the one that is locked?
Reply
@ABG1968, I looked at both and it looks like there is a qualifier feature the other one has this one doesn't. It also looks like there is something slightly different in the REI calculation but it is very close.
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Private Messages Chat Sign Out