The Elder Ray is a technical indicator used in financial markets to analyze price movements. It consists of three components: the Exponential Moving Average (EMA), the Bullish Elder Ray (which measures buying pressure), and the Bearish Elder Ray (which measures selling pressure). Traders use this indicator to identify potential trends and reversals in the market. Developed by Dr. Alexander Elder, the Elder Ray helps traders make informed decisions by providing insights into market strength. When the Bullish Elder Ray is above zero, it indicates strong buying interest, while a Bearish Elder Ray below zero suggests selling pressure. This information can guide traders in their investment strategies.