stelaraX - Elder Ray

stelaraX – Elder Ray

stelaraX – Elder Ray is a trend and momentum indicator designed to evaluate bullish and bearish pressure relative to a moving average. By separating buying power and selling power, it helps traders assess which side of the market is currently dominant.

This indicator is part of the stelaraX ecosystem, focused on clean technical analysis and AI-supported chart evaluation
stelarax.com

Core logic

The Elder Ray indicator is built around an exponential moving average (EMA) that acts as a value baseline. Two components are derived from this baseline: Bull Power and Bear Power.

Key principles:

* the EMA defines the underlying trend reference
* Bull Power measures how far price highs extend above the EMA
* Bear Power measures how far price lows extend below the EMA
* positive Bull Power reflects buying strength
* negative Bear Power reflects selling strength

Increasing Bull Power suggests strengthening bullish momentum, while decreasing Bear Power indicates weakening selling pressure.

Visualization

The script plots:

* Bull Power as a histogram above the zero line
* Bear Power as a histogram below the zero line
* separate color coding for bullish and bearish pressure
* a zero reference line for balance and trend context

This dual-histogram layout clearly visualizes shifts in market control between buyers and sellers.

Use case

This indicator is intended for:

* confirming trend direction using pressure analysis
* identifying potential trend exhaustion
* spotting bullish or bearish divergences
* filtering entries in trend-following strategies
* supporting momentum and strength-based trade decisions

It is most effective when used alongside trend filters, price structure, or AI-assisted chart analysis.

Disclaimer

This indicator is provided for educational and technical analysis purposes only and does not constitute financial advice or trading recommendations. All trading decisions and risk management remain the responsibility of the user.