The Elder-Ray Indicator is a technical analysis tool developed by Dr. Alexander Elder, consisting of two components — Bull Power and Bear Power — that measure the strength of buyers and sellers in the market relative to an exponential moving average (EMA). Bull Power is calculated as the difference between the session's high price and the EMA (measuring how far above the average buyers managed to push the price), while Bear Power is the difference between the session's low price and the EMA (measuring how far below the average sellers managed to push the price). When Bull Power is positive and rising, buyers are gaining strength. When Bear Power is negative but rising toward zero, selling pressure is weakening. The Elder-Ray is best used in conjunction with a trend-following indicator — Elder recommended using a 13-day EMA as the trend filter, entering long positions when the trend is up, Bull Power is positive, and Bear Power is rising from below zero. In Indian equity markets, the Elder-Ray is used by technically sophisticated traders for precise entry timing in trending Nifty 50 and sectoral stocks rather than as a standalone signal generator.
For android only
