what is Elder-Ray Index?

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what is Elder-Ray Index ?

Category: Tags: asked June 22, 2012

5 Answers

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http://www.investopedia.com/terms/e/elderray.aspWhat Does Elder-Ray Index Mean?A technical indicator developed by Alexander Elder that measures the amount of buying and selling pressure 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 EMABear Power = Daily Low - n-period EMA Investopedia explains Elder-Ray IndexTechnical traders will use the values of the bull and bear power along with divergence 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 previously. 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 previous 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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In technical analysis, a measure of the upward or downward pressure on a security's price. The Elder-Ray index uses two indicators: a bull power, measured as the daily high minus the exponential moving average for a certain period of time, and a bear power, measured as the daily low minus that same exponential moving average. A buy signal occurs when the bear power is negative but moving upward and the bull power has recently increased. Likewise, a sell signal occurs when the bull power is positive but moving downward and the bear power has recently fallen. One may also plot the Elder-Ray index on a chart and measure the slope of the line to confirm trends.

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A technical indicator developed by Alexander Elder that measures the amount of buying and selling pressure 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 EMABear Power = Daily Low - n-period EMA

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Developed by Dr Alexander Elder, the Elder-ray indicator measures buying and selling pressure in the market. The Elder-ray is often used as part of the Triple Screen trading system but may also be used on its own.Dr Elder uses a 13-day exponential moving average (EMA) to indicate the market consensus of value. Bull Power measures the ability of buyers to drive prices above the consensus of value. Bear Power reflects the ability of sellers to drive prices below the average consensus of value.Bull Power is calculated by subtracting the 13-day EMA from the day's High. Bear power subtracts the 13-day EMA from the day's Low.*http://www.incrediblecharts.com/indicators/elder_ray_index.php

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Elder-Ray Index is an index shows the power of buyers and sellers in pushing the security’s price above and below its exponential moving average.

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