Description:
The Elder Ray Index is a technical indicator developed by Dr. Alexander Elder in 1989. This indicator measures a market’s buying and selling pressure to help traders identify potential trends and reversals.
Input Parameters:
- Length: Number of periods used in the calculation.
- Price Source: The specific data points (such as open, high, low, or close) from each candle in a financial chart that an indicator uses for mathematical computations, enabling the calculation of metrics like the average over a specified period.
Use Cases:
- Bullish and Bearish Trends: If both Bull Power and Bear Power rise, it could signal a potential bullish trend. If both Bull Power and Bear Power fall, it could indicate a potential bearish trend.
- Reversals: If Bull Power rises while Bear Power falls, it could suggest an upcoming trend reversal in favor of the bulls. If Bear Power is rising while Bull Power is falling, it could suggest an upcoming trend reversal in favor of the bears.
- Combining with Other Indicators: This can be combined with other technical indicators, such as moving averages, RSI, or MACD, to gain a deeper understanding of the market dynamics and confirm potential trading signals.
This feature can be used in:
- Market Scanner
- Strategy Tester
- Multi-Factor Alerts
- Smart Checklist
Do you want to learn more? Check out our Learning Center Article.
May 11, 2024