Range Expansion Index (REI)
The Range Expansion Index is an arithmetically calculated market-timing oscillator designed to overcome problems with exponentially calculated oscillators.
Developed by Tom DeMark, this is a more precise indicator of trends and trading signals than exponential oscillators, such as MACD.
The REI oscillator typically produces values of -100 to +100 with 45 or higher indicating overbought conditions and -45 or lower indicating oversold conditions. DeMark advises against trading in extreme overbought or oversold conditions indicated by six or more bars above or below the +/-45 thresholds.
When conditions aren't met, the day's value is zero.
Trading should be avoided when: