The highest price is the maximum of the bullish force over a specified period of time.
The lowest price is the maximum of the bearish force over a specified period of time.
Elder Ray consists of three horizontal screens:
A chart with a 13-period exponential moving average. When the moving average rises there is a bullish trend. When the moving average falls there is a bearish trend.
A chart with a histogram of the Bullish Force.
A chart with a histogram of the Bearish Force.
Bullish / Bearish Force is calculated as follows:
Bull Power = High-EMA
Bear Power= Low-EMA
where
High - the maximum price over the period;
Low - the minimum price over the period;
EMA - exponential moving average.
If the price top is higher than the moving average, then the Bullish Force is above zero, so the bullish trend is confirmed. Otherwise, bulls are weak. If the price low is below the moving average this means that the downtrend is very strong. Otherwise, bears are weak.
Elder Ray Buy signals
Moving average rises and Bullish Force indicator is below zero. The best time to buy is when the Bearish Force first falls below zero and then immediately rises.
If new price highs are confirmed by new Bullish Force indicator highs, then it is a good confirmation of the bullish trend.
Moving Average shows the direction of a deal, and when the price approaches the moving average it is time to enter the market.
Warning: This document does not constitute an offer or a recommendation to enter into any transaction. All views and statements expressed are believed to be true and accurate when published. Any person relying on this information to trade does so entirely at his/her own risk. The markets can be very volatile. Prices may move rapidly against you, and past performance is not necessarily a guide to future performance.
