Elder Ray Index
Measures the power of bulls (high minus EMA) and bears (low minus EMA) relative to an exponential moving average to gauge trend and momentum together.
Formula
Bull Power = High − EMA(13); Bear Power = Low − EMA(13)
Developed by Dr. Alexander Elder, the Elder Ray Index splits into two components: Bull Power (bar high minus the 13-period EMA) and Bear Power (bar low minus the 13-period EMA). Positive Bull Power means bulls pushed price above the trend; negative Bear Power means bears pushed it below.
Elder used it as a three-screen confirmation: first identify the weekly trend, then trade in its direction on the daily when Bear Power (for longs) is negative but rising. A Bear Power reading crossing zero from below warns against new longs. The indicator rewards traders who combine it with trend context rather than using it in isolation.
Related Terms
Average Directional Index (ADX)
Non-directional trend-strength gauge (0–100); readings above 25 indicate a trending market, below 20 suggest a range.
IntermediateExponential Moving Average (EMA)
Moving average that weights recent closes more heavily via an exponential multiplier, reacting faster to price changes than the SMA.
BeginnerForce Index
Combines price direction, magnitude of move, and volume into a single oscillator; crosses above zero signal buying force, below signal selling force.
IntermediateMACD
Trend-following momentum indicator built from the difference between a 12- and 26-period EMA, with a 9-period signal line and histogram.
Beginner