How do I use Elder Ray?

Wait for EMA to show trend direction, then look for Bull/Bear Power to align. In uptrends, buy when Bear Power is negative but rising.

Key Takeaways

Difficulty:Intermediate

Reliability:High

Category:momentum

Timeframes:Daily, Weekly

Elder Ray Index

momentum📊 Daily, Weekly

Dr. Alexander Elder's indicator measuring Bull Power and Bear Power relative to an EMA.

Formula

Code

Bull Power = High - EMA(13)

Bear Power = Low - EMA(13)

Detailed Explanation

Elder Ray was developed by Dr. Alexander Elder to measure buying and selling pressure.

Components:
- Bull Power: Distance from high to EMA (buyer strength)
- Bear Power: Distance from low to EMA (seller strength)
- EMA: 13-period default

Trading Setup Example

Entry, stop loss, and take profit levels.

📈 Buy Setup

📉 Sell Setup

Always wait for signal confirmation before entering a trade.

Where This Indicator Works Best

Trend context and market position.

📈 Bullish Context

📉 Bearish Context

Detects overbought/oversold in trending and ranging markets.

Live Chart — Elder Ray Index

See Elder Ray Index in action on a live chart. Try changing the settings and timeframe.

Elder Ray Index is a manual drawing tool or chart type and cannot be auto-overlaid as a study.

Open Chart on TradingView

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Parameters

EMA Period

Default: 13

EMA calculation period

📈 Bullish Signals

EMA rising, Bear Power negative but rising toward zero

📉 Bearish Signals

EMA falling, Bull Power positive but falling toward zero

Python Implementation

Elder Ray calculation

Python

import pandas_ta as ta

df['EMA'] = ta.ema(df['close'], 13)

df['Bull_Power'] = df['high'] - df['EMA']

df['Bear_Power'] = df['low'] - df['EMA']

TradingView Pine Script

Try on TradingView

JavaScript

//@version=5

indicator("Elder Ray")

ema = ta.ema(close, 13)

bull = high - ema

bear = low - ema

plot(bull, "Bull Power", color=color.green, style=plot.style_histogram)

plot(bear, "Bear Power", color=color.red, style=plot.style_histogram)

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MT5 MQL5 Code

C++

int bears_handle = iBearsPower(_Symbol, _Period, 13);

int bulls_handle = iBullsPower(_Symbol, _Period, 13);

Python Libraries

pandas-ta

Technical analysis

pip install pandas-ta

Common Mistakes

✗Trading against EMA trend

✗Ignoring divergences

Confirmation Signals

EMA direction

MACD

Price action

Best For

Trend confirmationEntry timingPullback trading

💡 Pro Tips

•Part of Elder Triple Screen System
•Bull Power shows buyer strength
•Bear Power shows seller strength

Last updated: February 8, 2026

Educational Disclaimer

This content is for educational purposes only and does not constitute financial or investment advice. Trading involves significant risk and you may lose your capital. Always consult a licensed financial advisor before making investment decisions.

Learn More

Investopedia - Technical Indicators— Financial Education BabyPips - Technical Indicators— Trading School MetaTrader 5 Docs— Official Documentation

Frequently Asked Questions

Related Indicators

Exponential Moving Average (EMA)

EMA gives more weight to recent prices, making it more responsive to new information than SMA.

MACD (Moving Average Convergence Divergence)

MACD shows the relationship between two EMAs. Consists of MACD line, signal line, and histogram.

Relative Strength Index (RSI)

RSI measures the speed and magnitude of price changes, oscillating between 0-100 to identify overbought and oversold conditions.

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