RSX Range Expansion Index - With Confidence Bands - MetaTrader 5 Script - MT4/MT5 Resources

Range Expansion Index (REI) Definition:

The Range Extension Index (REI) is an oscillator that measures the rate of price change and signals overbought/oversold zones in case price is showing weakness or strength. It was developed by Thomas DeMark and described in his book The New Science of Technical Analysis .

The indicator value changes upward from -100 to +100. REI is a Reinforced Oscillator in that it is flat and will only show when a sizable top or bottom occurs that the trend has been reached.

This version is based on Mark's idea of ​​Jurik: according to him, REI can be made as rsx(high) + rsx(low) - the result should be smoother. So, this version is doing exactly that.

Additionally, this version adds some modified confidence intervals to make trend changes easier to spot (you can find more information about confidence bands here: Confidence Intervals and Prediction Intervals ). There is one parameter that needs explanation - confidence band offset:

It is the number of bands moved to provide usable intersection of REI values ​​and confidence bands. Without it, the results will not be logical, which is why the indicator limits the minimum offset to +1. The larger the offset, the more the bands will shift, but some experimentation is recommended (mild offsets will produce reasonably good results)

You have an option to choose between two color changing modes:

In this version, color changes are used as potential trend start and end signals

Attachment download

📎 rsx_range_expansion_index_-_cb.mq5 (12.93 KB)

Source: MQL5 #22379