ElderRays Technical Indicator
ElderRays Technical Indicator combine the properties of trend following indicators and oscillators. They use Exponential Moving Average
indicator (EMA, the best period is 13) as a tracing indicator. The
oscillators reflect the power of bulls and bears.To plot the ElderRays three charts should be used: on one side, the price chart and Exponential Moving Average
will be plotted, on two other sides bulls power oscillator (Bulls
Power) and bears power oscillator (Bears Power) will be plotted.
Elderrays are used both individually and together with other methods. If using them individually, one should take into account that the Exponential Moving Average slope determines the trend
movement, and position should be opened in its direction. Bulls and
bears power oscillators are applied for defining the moment of
positions opening/closing. Buy if:

there is an increasing trend (determined with the Exponential Moving Average movement);

the Bears Power oscillator is negative, but increasing at the same time;

the last peak of the Bulls Power oscillator is higher than the previous one;

the Bears Power oscillator increases after the Bulls divergence.
At the positive values of the Bears Power oscillator, it is better to keep back.
Sell if:

there is a decreasing trend (determined with the Exponential Moving Average movement);

the Bulls Power oscillator is positive, but decreases gradually;

the last trough of the Bulls Power oscillator is lower than the previous one;

the Bulls Power oscillator decreases leaving the Bears’ divergence.
Do not open short positions when the Bulls Power oscillator is negative.
Divergence between the Bulls and Bears Power and prices is the best time for trading.
Calculation:
BULLS = HIGH  EMA BEARS = LOW  EMA
Where: BULLS — force of bulls; BEARS — force of bears; HIGH — maximum price of current bar; LOW — minimum price of current bar; EMA — exponential moving average.
Source Code
Full MQL4 source of Bears Power is available in the Code Base: Bears Power
Full MQL4 source of Bulls Power is available in the Code Base: Bulls Power
