Elder-rays is one of forex technical indicator used in forex technical analysis, this indicator is used by many traders and it’s quite handy to use.
Elder-rays use exponential moving average indicator, or EMA, the preferable period of which is 13 as a tracing indicator. The oscillators reflect the bears’ and bulls’ power.
Elder-Rays Technical Indicator combine the properties of trend following indicators and oscillators. They use Exponential Moving Average indicator (EMA, the best period is 13) as a tracing indicator. The oscillators reflect the power of bulls and bears.
Elder-rays are individually used in the combination of other methods. These rays and technical indicators are individually taken into account for the determination of the slope in the Exponential Moving average and they are ranged in the determination of the trend movement. For this the position should remain open in all the directions. The application of the bulls and bears power are made enforced in the definition of the moment of the opening and closing positions.
The Elder Ray index actually consists of two indicators:
“Bull Power” (Daily High – n period moving average) and
“Bear Power” (Daily Low – n period moving average).
It’s better to purchase when:
1. The Bears Power oscillator is negative, but still growing;
2. The Bears Power oscillator increases after the Bulls discrepancy;
3. The last peak of the Bulls Power oscillator is higher than the previous one;
4. There is an increasing trend defined with the EMA fluctuations
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- Median Price
- McClellan Oscillator
- Mass Index (MI)
- Market Facilitation Index
- Linear Regression
- Klinger Oscillator (KO)
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- Kagi Chart
- Intraday Momentum (IMI)
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- Historical (Natenberg) Volatility
- Herrick Payoff Index
- Haurlan Index
- Full Stochastic Oscillator