The Range Expansion Index Metatrader 4 forex indicator is an oscillator that gauges the pace of price changes.
It signals overbought/oversold market conditions when price shows weakness or strength.
The man behind this indicator is Tom DeMark, who introduced it in his book “The New Science of Technical Analysis”.
The Range Expansion Index indicator has marked levels at +60 and -60, depicting overbought and oversold regions respectively.
One special feature of the Range Expansion Index indicator is the calmness it displays during range bound trading while only letting out signals during major peaks and bottoms in the market.
The EUR/USD M30 chart below displays the Range Expansion Index Metatrader 4 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the blue line of the Range Expansion Index Metatrader 4 forex indicator breaks above the zero signal level.
Sell Signal: Go short when the blue line of the Range Expansion Index Metatrader 4 forex indicator dips below the zero signal level.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the blue line of the Range Expansion Index indicator breaks below the +60.00 level, but if it fails to breach this level, then exit orders when it dips below the zero center line.
Exit sell trade: Close all sell orders if while a bearish trend is running, the blue line of the Range Expansion Index indicator breaks above the -60.00 level, but if it fails to beach this level, then exit positions when the indicator line breaks above the zero center line.
Tips: The default value of the REI_Period is 8, increasing this value yields less but more accurate signals, while decreasing it, produces more but inaccurate signals. We recommend you leaving this way.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (REI_Period), width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend | oscillator
Copy and paste the range-expansion-index.ex4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)