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Elder-Ray Index

外汇网2021-06-19 14:34:43 45
A technical indicator developed by Alexander Elder that measures the amount of buying and selling pssure in the market. This indicator consists of two separate indicators known as "bull power" and "bear power". These figures allow a trader to determine the position of the price relative to a certain exponential moving average (EMA).

Bull Power = Daily High - n-period EMA

Bear Power = Daily Low - n-period EMA

Technical traders will use the values of the bull and bear power along with pergence to make transaction decisions. Long positions are taken when the bear power has a value below zero but is increasing and the bull power's latest peak is higher than it was pviously. A short position is taken when the bull-power value is positive but falling and the bear power's recent low is lower than any other pvious bottom. The slope of the EMA can also be used in both cases to help confirm the direction of the trend.

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