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.

See also Elders Bull Power
See also Elders Bear Power

Elder Ray Index1

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.

Elder Ray Index2

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.

Important Disclaimer: The information provided on this page is strictly for informational purposes and is not to be construed as advice or solicitation to buy or sell any security. Please see our Risk Disclosure and Performance Disclaimer Statement.


//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;
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;