Bears Power XAUUSD Technical Analysis & Bears Power XAUUSD Signals
Developed by Alexander Elder
Bears Power is used to estimate the power of the Bears (Sellers). Bears Power estimates the balance of power between the bulls and bears.
This xauusd indicator aims at identifying if a bearish xauusd trend will continue or if the price has reached a point where it might reverse.
Calculation
A Price bar has four parameters: the Opening, Closing, High & Low of the price bar.
Each XAUUSD Price bar either closes higher or lower than the prior price bar.
The highest price will indicate the maximum power of the Bulls within a price period.
The lowest price will indicate the maximum power of the Bears within a price period.
This xauusd indicator uses the Low of the price & a MA (Exponential Moving Average)
The moving Average represents the middle ground between sellers and buyers for a certain price period.
Hence:
Bears Power = Low Price - Exponential Moving Average
Technical Analysis and Generating Signals
Sell Gold Signal
A sell signal is generated when oscillator technical indicator moves below Zero.
In a down xauusd trend, the LOW is lower than Exponential Moving Average, so the indicator is below zero and Oscillator Trading is located below the zero line.
Exit Signal
If the LOW moves above the EMA then it means that prices are starting to rise, the histogram rises above the zero line.
The Triple Screen method for this indicator suggests identifying the price trend on a higher chart interval (like daily time frame) and applying the bears power signals on a lower chart timeframe interval (like hourly chart timeframe). Signals are traded according to the lower time frame but only in the direction of the long term xauusd trend in the higher chart time frame.
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