Ray Bull Power Study

By Samantha Baltodano

TL;DR:

The Ray Bull Power study plots only the Bull Power component of the Elder Ray indicator.

What Is Ray Bull Power?

The Ray Bull Power study plots only the Bull Power component of the Elder Ray indicator.

Bull Power is calculated by subtracting an Exponential Moving Average of closing prices from the high price of the day for a security. 

Bear power represents the capacity of bears to push prices below the Moving Average. The distance between the low price and the EMA, which widens when the bears are weaker and narrows when they are stronger, gives this figure. Bear power is typically negative, so if it turns positive, the bulls have taken complete control.

Bull Power values are plotted as histograms under the bar chart of your chosen security.

For more background on this indicator and to learn how to interpret it, check out the Elder Ray indicator.

Summary

• Bull Power is calculated by subtracting an Exponential Moving Average (EMA) of closing prices from the high price of the day for a security.
• Bull Power represents the capacity of bulls to push prices above the Moving Average.
• The distance between the high price and the EMA, which widens when the bulls are weaker and narrows when they are stronger, gives this figure.

Ray Bull Power is just one of many studies that Archaide automates. For a full list of strategies and studies available click here.

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