Alexander Elder's pair of histograms. Bull Power and Bear Power, plotted independently, render the buyers' best moment and the sellers' best moment of each bar as separate distances from a 13-period EMA.
Elder-Ray was introduced by Alexander Elder in Trading for a Living (1993). With a 13-period exponential moving average (EMA) serving as a proxy for trend, the indicator plots two histograms: Bull Power (the difference between each bar's high and that EMA) and Bear Power (the difference between each bar's low and that EMA).
The name "Ray" reflects Elder's metaphor: an X-ray that passes through the body of the candle and reveals the forces operating underneath. The histograms show the best moment of the buyers and the best moment of the sellers for each bar — held side by side, before they are netted into a single close.
Elder embedded the indicator into his "Triple Screen" trading system: a longer timeframe defines the trend, a shorter timeframe uses Bull and Bear Power to time entries within it.
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