Bears Power Bitcoin Analysis & Bears Power Trading Signals
Developed by Alexander Elder
Bears Power is used to gauge power of the Bears (Sellers). Bears Power measures the balance of power between the bulls & bears.
This btcusd indicator aims at identifying if a bearish bitcoin trend will continue or if the bitcoin price has reached a point where it may reverse.
Calculation
A Bitcoin Price bar has four parameters: the Opening, Closing, High & Low of the bitcoin crypto price bar.
Each Bitcoin Price bar either closes higher or lower than the prior bitcoin price bar.
The highest bitcoin price will show the maximum power of the Bulls within a bitcoin cryptocurrency price period.
The lowest bitcoin price will show the max power of Bears within a bitcoin crypto price period.
This btcusd indicator uses the Low of the bitcoin price and a MA (Exponential Moving Average)
The moving Average represents the middle ground between sellers and buyers for a certain bitcoin price period.
Hence:
Bears Power = Low Bitcoin Price - Exponential MA
BTCUSD CryptoCurrency Analysis and Generating Signals
Sell Trading Signal
A sell cryptocurrency signal is generated when oscillator goes below Zero.
In a down btcusd trend, the LOW is lower than Exponential Moving Average, so the technical indicator is below zero and Histogram is located below zero line.
Exit Signal
If the LOW crosses above the Exponential Moving Average then it means that bitcoin price are beginning to rise, the histogram rises above zero line.
The Triple Screen technique/method for this trading indicator suggests spotting the bitcoin price trend on a higher chart interval (like daily time frame) and applying the bears power signals on a lower chart time frame interval (like hourly timeframe). Signals are traded and transacted in accordance to the lower timeframe but only in direction of the long term bitcoin trend in the higher chart time frame.
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