RSX Range Expansion Index with Floating Signal Levels

Summary

The document describes the Range Expansion Index, an oscillator attributed to Thomas DeMark, for gauging price movement and possible overbought or oversold conditions. Its values range from -100 to +100. The source characterizes REI as staying neutral during flat price action and signaling when notable highs or lows indicate strength or weakness.

This variant follows an idea attributed to Mark Jurik: it combines RSX calculations on highs and lows to produce a smoother oscillator, then adds floating levels to help identify possible trend changes. Users can choose whether color changes occur when outer levels are crossed or when a middle, zero-like level is crossed. Those color shifts are presented as potential trend start or end signals. The document gives no parameters, validation, or trading results, so the signals should be treated as indicator interpretations rather than demonstrated forecasts.

Key ideas

• REI is described as an oscillator ranging from -100 to +100 that can signal possible overbought or oversold conditions.
• The variant combines RSX applied to highs and lows to produce a smoother reading.
• Floating levels support two color-change modes based on outer thresholds or a middle level.
• Color shifts are proposed as potential trend transition signals, without supporting performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.