Elder ray: Bears Power, Bulls Power trading indicators Forex.

Elder ray trading indicator was developed by Alexander Elder in 1989 and present in his book "Trading for a Living". By using day quotes data, Elder calculates exponential moving average of day close prices 13 days long. He entered "Bull Bower" concept: day high minus exponential moving average. "Bear Power" it's difference between close price and exponential moving average. The main rule for trading use Elder ray: Buy, when long-term trend direction is upwards and "Bear Power" has negative but increased values. Addition, but not needed, condition is positive divergence of "Bear Power", another words, when the price move down to more low minimum but last "Bear Power" minimum is more than previous.

It's need to close buy when "Bull Power" negative divergence is appeared. Sell, when long-term trend direction is downwards, but "Bull Power" has positive, but decreased values. Addition, but not needed, condition is negative "Bull Power" divergences, when the price reach more high maximum than previous but new "Bull Power" maximum less than previous every time. In the case when "Bull Power" is negative, it's too late for sell. It's need close sell trade when "Bull Power" positive divergence is appeared.

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