RSX range expansion index – with floating levels – indicator MetaTrader 5

Range Expansion Index (REI) definition :

Range Expansion Index (REI) is an oscillator that measures price changing rate and signals about overbought/oversold areas, in case a price shows weakness or strength. It was developed by Thomas DeMark and described in his book “The New Science of Technical Analysis”.

The indicator values change from -100 up to +100. REI is an enhanced oscillator, as it stays neutral during a flat and shows trends only when considerable top or bottom have been reached.

This version :

This version is made according to Mark Jurik’s idea : according to him, REI can be made as rsx(high) + rsx(low) – and the result should be much smoother. So, this version is doing exactly that. Also, this version is adding floating levels in order to make the trend changes spotting easier. You have an option to chose between two color changing modes :

• color change when outer levels are crossed
• color change when middle level (a sort of a “zero line”) is crossed

Usage :

In this version use color changes change as potential trend start and end signals