Adaptive Moving Average



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The Elder-ray indicator measures buying and selling pressure in the market. The Elder-ray is often used as part of the Triple Screen trading system but may also be used on its own. The All Ordinaries Index (Australia) is shown with
  • 13-day exponential moving average (EMA) and
  • Elder Ray Bull & Bear Power.
1. Go short [S] on bearish divergence on Bull Power. Wait for the EMA to turn downwards.
2. Go long [L] on bullish divergence on Bear Power. Wait for the EMA to turn upwards.
3. Bearish divergence on Bull Power but no trade is entered - the EMA does not turn down.