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"Elder Ray" or "Ray" indicator is based on the Dr. Alexander Elder's oscillators: Bulls & Bears Power. Both of them works with an EMA. This indicator is used by traders to identify divergence, market directions and more... Dr. Elder's method generally uses a 13-day EMA Period but this can be modified based on your personal demand. 

The calculations are: 

  • Bulls Power= high candle - EMA close
  • Bears Poder= low candle - EMA close
  • Lime line represents Bulls Power and OrangeRed line, shows Bears Power.

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