What is the Range Expansion Index Indicator for MT4?

The Range Expansion Index (REI) indicator is a technical analysis tool that measures the strength of a particular currency’s bid-ask spread. It is calculated by taking the difference between two values: the bid price and the asking price. The higher this difference, the stronger the currency’s bid-ask spread and its risk of being subject to market volatility.

Range Expansion Index Indicator

Download the Free Range Expansion Index Indicator

The REI indicator is often used to gauge a currency’s volatility and potential for price movement. A high value may indicate strong demand for particular money and an increased risk of adverse price movements. On the other hand, a low value may indicate limited requests and reduced risk of price movements.

How to use the Range Expansion Index Indicator for MT4?

The Range Expansion Index indicator is a technical analysis tool that uses exponential moving averages to determine the level of support or resistance for a particular currency pair. The device works by tracking the difference between current and previous prices.

When the value of the difference is positive, it signals strong support for the currency pair, while a negative value indicates resistance. The indicator can identify turning points in the currency’s price movement, which can help traders decide when to enter or exit positions. It is best used with a trailing stop-loss to avoid losses if the indicator signals a change in direction.

Range Expansion Index Indicator MT4 trading settings

The indicator is calculated using several factors, including the difference between the two currencies’ daily ranges and their daily volatility. The indicator is calculated as follows:

Where “D1” is the difference between the currencies’ daily ranges (measured in percentage terms) and “D2” is the currencies’ daily volatility (measured in percent). As you can see, the formula considers the distance between the two currencies and their volatility. Thus, it objectively measures how much a particular currency’s value has changed compared to another.

The indicator may help identify market opportunities and determine whether a particular currency is undervalued. It may also help identify potential signals for trading positions.

Range Expansion Index Indicator Advantages

It provides an objective measure of how a currency’s price is moving. This allows us to analyze past trends, make future predictions, and take directional trades in our analysis. Using a forex Range Expansion Index Indicator helps us understand why currencies move in specific directions and how strong those movements may be.

Range Expansion Index Indicator Disadvantages

However, this indicator has two significant disadvantages. First, it does not consider fundamental factors driving a currency’s value, such as economic growth or government debt levels. Second, the indicator only gives an overview of the market and does not give specific recommendations on when to buy or sell a particular currency.

In short, while the forex range expansion index helps provide an overview of a given currency’s status, other more advanced technical analysis tools can be used to make more informed trading decisions.

REI Indicator installation on MT4

Installing the Range Expansion Index Indicator on MT4 is a simple process that involves the following steps:

  1. Download the indicator: First, you need to download the Range Expansion Index Indicator file in the .mq4 format from a reliable source on the internet.
  2. Open MT4: After downloading the file, open your MT4 trading platform.
  3. Open the Data Folder: Click on the “File” tab at the top left corner of the MT4 platform, then click on “Open Data Folder.”
  4. Copy the indicator file: Double-click on the “MQL4” folder in the data folder, then double-click on the “Indicators” folder. Copy and paste the downloaded indicator file into the “Indicators” folder.
  5. Restart MT4: Close and reopen the MT4 platform for the changes to take effect.
  6. Locate the indicator: Once you have restarted MT4, locate the “Navigator” window on the left side of the screen. Expand the “Indicators” section; you should see the Range Expansion Index Indicator listed there.
  7. Apply the indicator: Drag and drop it onto the chart you want to apply it. Alternatively, you can double-click on the hand and select the chart to which you want to use it.
  8. Customize the indicator settings: Once the indicator is applied to the chart, you can customize it by right-clicking it and selecting “Indicators List.” Select the Range Expansion Index Indicator and click the “Edit” button. You can adjust the indicator’s settings from here to suit your trading strategy.

That’s it! You have successfully installed and applied the Range Expansion Index Indicator on MT4 to your cart.

Range Expansion Index Indicator mt4

Range Expansion Index Indicator mt4 free download


In this article, we reviewed the Range Expansion Index Indicator and learned how to install it on MT4. After learning about the indicator, you should be able to apply it to your chart and customize its settings for optimal trading performance.

Author: Dominic Walsh

I am a highly regarded trader, author & coach with over 16 years of experience trading financial markets. Today I am recognized by many as a forex strategy developer. After starting blogging in 2014, I became one of the world's most widely followed forex trading coaches, with a monthly readership of more than 40,000 traders! Make sure to follow me on social media: Instagram | Facebook | Linkedin | Youtube| Twitter | Pinterest | Medium | Telegram Channel | Quora | Reddit

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