BITCOIN ELDER RAY

What is Bitcoin Elder Ray?

Bitcoin Elder Ray compares the high and low of each candle with a smoothed closing-price reference. The default reference is a 13-period exponential moving average. One line shows high minus that average; the other shows low minus that average. Together they describe where the candle’s full range sits relative to the recent price path.This makes Elder Ray different from a single close-versus-average comparison. A candle can close above its average while much of its range lies below, or reach above the average briefly and finish beneath it. Reading the two distances preserves that geometry without claiming to measure individual buyers, sellers or orders.

Read the high’s distance

A positive upper line means the candle’s high exceeded the 13-period average. If it is negative, even the candle’s highest price remained below the average. A bigger positive value means a larger dollar reach above that reference, not a measured amount of buying.

Read the low’s distance

A negative lower line means the candle’s low fell below the average. A positive lower line means the entire candle range remained above it, since the high cannot be below the low. When the upper line is positive and the lower negative, the range straddles the average.

Understand the combined direction label

Maketo adds the two distances. A positive sum is Rising, a negative sum Falling, and zero Mixed. Algebraically, this is twice the candle midpoint’s distance from the exponential average. The summary therefore compares the range midpoint with the smoothed close, while the chart preserves both individual distances.

How Elder Ray is calculated

The upper measure is high minus a 13-candle exponential average of closes. The lower measure is low minus that same average. The page is published on Elder Ray, period 13. A period counts candles at the interval you choose, so the same setting covers a different stretch of time on a one-hour chart than on a daily one. How smoothing and missing candles are handled.

A calculation you can follow

Use these invented prices and an already initialized 13-period average. Suppose the candle’s high is $104,000, its low is $99,000, and the exponential average is $100,000.The upper line is $104,000 − $100,000 = +$4,000. The lower line is $99,000 − $100,000 = −$1,000.Their sum is +$3,000. The candle midpoint is ($104,000 + $99,000) ÷ 2 = $101,500, which is $1,500 above the average; doubling that gives the same +$3,000.If a different candle has a $100,500 high and a $97,000 low against the same $100,000 reference, its distances are +$500 and −$3,000. The sum is −$2,500, even though its high still briefly reached above the average.A positive upper line alone cannot establish the page’s combined direction. The lower part of the candle can extend further below the reference than the high extends above it.

EMA period 13

The default exponential average gives the newest close a weight of 2 ÷ (13 + 1), or one-seventh. A shorter period moves the reference more quickly toward recent closes. A longer period retains more of the earlier closing-price path.

Current reference, current range

Both distances use the moving average calculated at the same candle, including that candle’s close. They do not compare today’s high and low with yesterday’s unchanged average. This detail matters when manually reproducing a large candle’s result.

Candle interval and dollar units

The high and low belong to the selected candle interval, and the period counts candles. A daily range can be much wider than an hourly one. Both lines remain dollar distances, so numerical heights across different intervals and Bitcoin price levels need that context.

A wick does not reveal time or trading quantity

The high and low record extremes, not how long price stayed there or how many Bitcoin traded there. A brief isolated reach can produce a large line value. Volume and actual trade-side evidence are separate measurements.

The reference can move while the range stays similar

Even with similar highs and lows, an evolving exponential average changes both distances. When explaining a move in Elder Ray, check whether the candle moved, the reference moved, or both.

Do not interpret the names as trader identities

Traditional presentations often attach opposing-force names to these lines. Their inputs remain high, low and a moving average. They do not identify which traders initiated transactions or whether a particular group was adding to its holdings.

Elder Ray compared with Exponential Moving Average

The EMA page shows the closing-price reference directly. Elder Ray shows how far each candle reached above and below it. Use the same period, 13 by default here, to separate movement in the underlying average from changes in the candle’s range. Open Bitcoin Exponential Moving Average.

Can both Elder Ray lines be positive?

Yes. If the low is above the exponential average, the high must be above it too. The whole candle range then lies above the reference. Both can likewise be negative when the whole range is below.

Can the upper line be below the lower line?

Not with valid candle prices and the same average. Their difference is high minus low, which cannot be negative. They are equal only when the candle’s high and low are equal.