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Bears Power XAUUSD Technical Analysis and Bears Power XAUUSD 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 and bears.


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


Calculation

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


Each XAUUSD Price bar either closes higher or lower than the previous gold price bar.


The highest gold price will indicate the maximum power of the Bulls within a xauusd price period.


The lowest gold price will indicate the maximum power of the Bears within a xauusd price period.



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


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


Therefore:


Bears Power = Low XAUUSD Price - Exponential Moving Average


Bears Power XAUUSD Indicator


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XAUUSD Technical Analysis and Generating XAUUSD Signals


Sell XAUUSD Signal

A sell xauusd signal is generated when the oscillator moves below Zero.

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

Sell XAUUSD Signal



Exit Signal

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

Buy XAUUSD Signal

The Triple Screen method for this indicator suggests identifying the gold price gold 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 xauusd trend in the higher chart time frame.

 

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