The Elder-Ray Indicator: Seeing Into the Market

One of the key benefits of forex trading is the opportunity it offers traders in both bull and bear markets. This is because forex trading is always done in pairs, when one currency is weakening the other is strengthening thereby allowing you to take advantage of rising and falling markets.

For shorting, two conditions are absolutely necessary: I also saw the download links to the indicators. The trend is up as indicated by EMA.

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Table Of Contents Table Of ContentsTable Of Contents September 19, / Stock Market Indicators: Bull/Bear Ratios waystomakequickmoney.cf Yardeni Research, Inc. Bulls & Bears 1 Bull/Bear Ratio Over 2 Bull/Bear Ratio Under 3.

Bearish markets follow a downward trend as investors sell riskier assets such as stocks and less-liquid currencies such as those from emerging markets.

This is because forex trading is always done in pairs , when one currency is weakening the other is strengthening thereby allowing you to take advantage of rising and falling markets. Please let us know how you would like to proceed. What Are Bearish and Bullish Markets? What Happens in a Bull Market? Why Does It Matter to You? The day EMA referenced earlier is the average consensus of value over the last 13 days.

In interpreting the moving average, we are most concerned with its slope. When the slope rises, the crowd is becoming more bullish. When it falls, the crowd is more bearish.

Clearly, the best course of action is to trade in the direction of the EMA. The high of the consensus of value occurs when bulls cannot lift prices any higher, thereby reaching their maximum power. And the low represents the lowest value to which the bears are capable of pushing the price, thereby reaching their maximum power.

So the low shown on the daily bar is the maximum power of bears for the day; on the weekly bar is their maximum power during the week, and so forth. By measuring the distance from the bar's high to the EMA, bull power represents the capacity of bulls to push prices above the average consensus of value price. Bull power rises when bulls are stronger and falls when they are weaker, even becoming negative when they are utterly weak.

Bear power, by contrast, is the capacity of bears to push prices below the moving average. The distance between the low and the EMA, which widens when the bears are weaker and narrows when they are stronger, gives this figure. Bear power is typically negative, so if it turns positive, the bulls have taken complete control.

Here are the conditions essential for buying:. The corresponding sell signal is realized when prices hit a new high but bull power reaches a lower peak than that of its previous rally. For shorting, two conditions are absolutely necessary:. Two additional conditions provide a stronger signal for shorting, but they are not absolutely essential:. In deciding when to cover short positions, it is important to interpret the time at which bear power indicates the weakness or strength of bears.

It was helpful to learn about overlapping both the bulls and bears indicator. Is it possible for you or Craig to elaborate more on the Fix minimum and fix maximum numbers in reference to using it as a leading indicator? I also saw the download links to the indicators. Indicators may well be under default for some people. Maybe not for others. Either way they are free. Fill out the form below to signup to our newsletter and we'll drop you a line when new Indicators and Expert Advisors are added.

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