Mastering Bulls Power: A Guide to the Elder-Rays Indicator

Hey there, fellow traders! Today, we're diving into the Elder-Rays technical indicator, a powerful tool that combines the best of trend-following indicators and oscillators. At the heart of this system is the Exponential Moving Average (EMA), and for our purposes, we'll stick with the 13-period EMA as our go-to. This setup helps us gauge the strength of both bulls and bears in the market.

Bulls Power, Bulls

Now, when it comes to plotting the Elder-Rays, you’ll want to have three charts handy: one for price alongside the EMA, and two others for the Bulls Power oscillator and the Bears Power oscillator.

The Elder-Rays can be used on their own or in conjunction with other methods. If you're flying solo with these indicators, remember that the slope of the EMA sets the trend direction, so you’ll want to align your positions accordingly. The oscillators will help you pinpoint the right moments to open or close your trades.

When to Buy:

You see an increasing trend based on the EMA movement.
The Bears Power oscillator is negative but on the rise.
The last peak of the Bulls Power oscillator exceeds the previous peak.
The Bears Power oscillator is rising after a divergence with the Bulls Power.

Keep in mind that if the Bears Power oscillator is showing positive values, it’s best to hold back on buying.

When to Sell:

You notice a decreasing trend indicated by the EMA.
The Bulls Power oscillator is positive but gradually declining.
The last trough of the Bulls Power oscillator is lower than the one before it.
The Bulls Power oscillator is decreasing after showing a divergence from the Bears.

And a quick tip: steer clear of opening short positions when the Bulls Power oscillator is in the negative territory. Divergences between the Bulls and Bears Power oscillators and price movements often present the best trading opportunities.

Mastering Bulls Power: A Guide to the Elder-Rays Indicator

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