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. You can use in the xPrice any series: Open, High, Low, Close, HL2, HLC3, OHLC4 and ect...
Hi, thanks for developing this script, i just wanna check on how to use this indicator as an entry? I have displayed bother Bull and Bear power, but trying to understand how it works - for instance, market is bullish but i see Bear power at -319, while Bull Power is at 95 which is opposite to what is should be, appreciate your advise, thanks.
HPotter
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@msherif2020, Hi, I can`t help you with this question. Sorry.
JPiercee
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Hi HPotter, thank you for the script, this is great tool to measure strength of market, I've been learning Dr. Elder's books... I'm wondering that it's defined Bull Power maximum is when the bulls can no longer lift the price up versus 13-day EMA. Does it mean they run out source of fund or margin? or is it something else? I'd like to know more particularly. Please advise
HPotter
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@JPiercee, This is a technical indicator that simply calculates values. The bulls ran out of money, or the desire to buy simply disappeared, or they simply have no connection with the market ;) no one knows.