Elder Ray Index
The Elder Ray Index (ERI) was authored by Alexander Elder. The ERI should be used with Elder’s Bear and Bull Power studies. The ERI is the the exponential moving average of the midpoint price for a 13 bar period. The user may change the input (midpoint), method (EMA) and period length. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Elders Bear Power
The Elder Ray Index should be used with Elder’s Bear and Bull Power studies. Keep the inputs, methods and period lengths the same for all studies. If the MA is rising and the bear troughs below the mid guide a buy signal is generated. Conversely, if the ma is falling and the bull peaks above the mid guide a sell signal is given.
How To Access in MotiveWave
Go to the top menu, choose Study>Alexander Elder>Elder Ray Index
or go to the top menu, choose Add Study, start typing in this study name until you see it appear in the list, click on the study name, click OK.
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//input = price, user defined, default is midpoint
//method = moving average (ma), user defined, default is EMA
//period = user defined, default is 13
//index = current bar number
Plot: ma = ma(method, index, period, input); bull = high - ma; bear = low - ma; //Signals prevBull =bull[index-1]; prevBear =bear[index-1]; prevMa = ma[index-1]; lowBuy = bear for last buy signal, reset to max_positive at each sell signal; highSell = bull for last sell signal, reset to max_negative at each buy signal; sell=bull moreThan midGuide AND bull lessThan prevBull AND ma lessThan prevMa AND bull moreThan highSell; buy=bear lessThan midGuide AND bear moreThan prevBear AND ma moreThan prevMa AND bear lessThan lowBuy;