What is Elder Rays?
Elder Ray was developed by Dr Elder, to measure the performance levels of two competing groups, Bears Power and Bull Power. The Elder Ray indicator generates an index to sell when the performance of bears turns positive and to buy when bull power becomes negative. It combines this with an exponential moving average, which is a trend. The slope of the exponential Moving Average is equally important as the direction indicates the general trend. If the downward trend continues, cover your shorts and prepare for a subsequent upward trend. Traders can also set the moving average against the bull and bear power indicators to confirm the trend and trade on the strength of the signal.
A brief history of Elder Ray
Elder Ray Charting Basics
Elder Ray Trading Standards
Common Elder Ray Terms
The maximum Bulls Power indicates the maximum strength of the bulls on a given bar. Bulls earn a profit when the price rises, so speculators buy until the price reaches the maximum level. Bulls Maximum power is a moment when bulls want to move the price higher but no longer have money. The minimum Bears Power indicates the maximum strength of the bears on a given bar. When the price goes down, bears make a profit and therefore sell until the price reaches its minimum.
Bears Minimum power is a moment when bears want to move the price further down but are no longer able to do so. Bulls Power indicates bulls’ ability to raise the price above the asset value average agreement.as a norm the bulls’ power is above zero. If it’s below zero, then that means that the bulls are in fear and will lose their control. Bears Power reflects the ability of bears to bring down the price below the asset value average agreement. The strength of bears usually is below zero. If it is above zero, then the bulls will be too strong, and the bears will lose their power.
Bulls vs Bears Power
Bear/Bull Powers Indicator Explained
How to Calculate Bears and Bulls Power Indicators
The Bear and the Bull Power are the oscillators designed by Dr. Elder Alexander. They calculate the power of the buyers and sellers (Bears), i.e. above or below the average, to move the price in their favor. The Elder-Ray Index is the two indicators.
In the bull market, investors are confident of the market background and are willing to invest or trade and hold positions for longer. Uncertainty stalls the market in a bear market, which constantly worries traders about fall in prices.
Bear markets have occurred when advertising costs have decreased by more than 20% with negative speculation. Bear markets may be recurrent or longer-term.
A bear showcase marks a 20% decrease in stocks from later highs and a by and immense critical feeling on Divider Road. Bear control could be a degree of whether the bear drives costs up or down, with a positive or negative relationship between the two.
The simple answer, Yes. Elder-Ray developed the indicator and named it Bull/Bear Power.
Three major adjustments can be made to your portfolio: for bear markets, bull markets, and for all markets. Click here to learn more about the strategies needed for each market.
A Bull or a Bear are both animals you do not want to run into in an open space, both strong and powerful in their own rights. The Markets use the Bear to symbolize fear. A bear market means prices are falling, the Bull symbolizes optimism a charge forward as it is with the characteristics of how a bull attack. A bull market means prices are rising continuously over a lengthy period with prices moving into new high territories.
Resources and References
Moving Average (MA) DefinitionRead More