Bears Power CFD Technical Analysis and Bears Power CFD Signals

Developed by Alexander Elder

Bears Power is used to estimate power of the Bears (Sellers). Bears Power estimates the balance of power between the bulls & bears.

This cfds technical indicator aims at identifying if a bearish cfd trend will continue or if the cfd price has reached a point where it might reverse.

Calculation

A CFD Price bar has 4 parameters: the Opening, Closing, High and Low of the cfd price bar.

Each CFD Price bar either closes higher or lower than the previous cfd price bar.

The highest cfd price will show the maximum power of the Bulls within a cfd price period.

The lowest cfd price will show the maximum power of the Bears within a cfd price period.

This cfds technical indicator uses the Low of the cfd price and a Moving Average (Exponential)

The moving Average represents the middle ground between sellers & buyers for a certain cfd price period.

Therefore:

Bears Power = Low CFD Price - Exponential Moving Average

CFD Technical Analysis & Generating CFDs Signals

Sell CFD Signal

A sell trading signal is generated when oscillator moves below Zero.

In a down cfds trend, the LOW is lower than EMA, so the indicator is below zero & Histogram/Oscillator is located below zero line.

Exit Trading Signal

If the LOW moves above the EMA then it means that cfd price are starting to rise, the histogram rises above the zero line.

The Triple Screen technique for this indicator suggests identifying the cfd price trend on a higher chart interval (like daily time frame) and applying the bears power signals on a lower chart interval (like hourly time frame). Signals are traded according to the lower time frame but only in the direction of the long term cfd trend in the higher chart timeframe.