- December 4, 2013
- Posted by: Forex Wiki Team
- Category: FX Ind
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Author: | MetaQuotes (2005.11.29 12:53) | ||
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Elder-Rays Technical Indicator combine the properties of trend following indicators and oscillators. They use Exponential Moving Average indicator (EMA, the best period is 13) as a tracing indicator. The oscillators reflect the power of bulls and bears.To plot the Elder-Rays three charts should be used: on one side, the price chart and Exponential Moving Average will be plotted, on two other sides bulls power oscillator (Bulls Power) and bears power oscillator (Bears Power) will be plotted.
Elder-rays are used both individually and together with other methods. If using them individually, one should take into account that the Exponential Moving Average slope determines the trend movement, and position should be opened in its direction. Bulls and bears power oscillators are applied for defining the moment of positions opening/closing. Buy if:
At the positive values of the Bears Power oscillator, it is better to keep back. Sell if:
Do not open short positions when the Bulls Power oscillator is negative. Divergence between the Bulls and Bears Power and prices is the best time for trading. |