Range Expansion Index (REI) Type: Momentum Oscillator
The Range Expansion Index (REI) is a momentum oscillator, measuring the velocity and magnitude of
directional price movements. Developed by Thomas DeMark, it compares the current day's range to the
average range over a given period. It quantifies whether the current price range represents a contraction
or expansion compared to the average. The REI is most typically used on an 8 day timeframe. Extreme REI
values often signal potential reversal points, as they reflect sharp directional moves that may not be
sustainable.
Interpretation: According to Thomas DeMark, potential shifts in momentum when the REI rises above +60 and
then drops below (price weakness). Conversely, when it falls below -60 and then climbs back above, it may
signal price strength.
REI > +60: Overbought condition — strong upward momentum that may be unsustainable (when crossed from
above)
REI between +60 and -60: Neutral zone — the market is neither gaining upward strength nor showing
downside pressure
REI < -60: Oversold condition — strong downward momentum that could reverse (when crossed from below)
Range Expansion Index (REI) Type: Momentum Oscillator
The Range Expansion Index (REI) is a momentum oscillator, measuring the velocity and magnitude of directional price movements. Developed by Thomas DeMark, it compares the current day's range to the average range over a given period. It quantifies whether the current price range represents a contraction or expansion compared to the average. The REI is most typically used on an 8 day timeframe. Extreme REI values often signal potential reversal points, as they reflect sharp directional moves that may not be sustainable.
Interpretation: According to Thomas DeMark, potential shifts in momentum when the REI rises above +60 and then drops below (price weakness). Conversely, when it falls below -60 and then climbs back above, it may signal price strength.
See