Elder Ray Bull Bear Power

Elder Ray (Trading for a Living, 1993) reads a market as a tug-of-war between buyers and sellers around a "consensus" price - the EMA of close. Bull Power = High - EMA measures how far buyers managed to push price above that consensus on the bar; Bear Power = Low - EMA measures how far sellers pushed it below. Both numbers come off the SAME EMA rather than two separately-tuned averages, which is what keeps them directly comparable bar to bar and to each other. Elder's own published reading: in an uptrend, Bear Power troughs that rise from one pullback to the next (even while price makes a lower low) signal fading selling pressure - a bullish divergence. The mirror case in a downtrend uses Bull Power peaks. Neither line alone is the signal; it is the pattern of each one's extremes over successive pullbacks that Elder's method actually reads. Notes and limitations - Non-repainting: every value depends only on closed bars up to and including its own bar. - Recomputes the full visible history from bar 0 on every call rather than incrementally updating from prev_calculated, because the EMA recursion depends on its entire prior history; this is deliberate, matching the other chained-EMA indicators in this catalogue. - Bull Power is only meaningfully positive in an uptrend and Bear Power only meaningfully negative in a downtrend - Elder's method assumes the broader trend direction is already established by another tool before reading these two, it does not determine trend direction itself. - No alerts or divergence auto-detection are included; reading the divergence pattern is left to the trader, as in the original method.

Indicator · MT4 · v1.0 · Free

Tags: Moving Average · MT4 Indicator · MQL4 Source Code

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