Trade Forex Trading

Bears Power XAU USD Technical Analysis & Bears Power XAUUSD Signals

Created by Alexander Elder

Bears Power indicator helps to figure out how strong the Bears (Sellers) are. Bears Power tells you who is more in control, the buyers or sellers.

This gold tool helps spot if a downward trend in XAUUSD will keep going or if the price might turn back up.

Calculation

A price bar includes 4 pieces of info: the starting, ending, highest, and lowest points of the price bar.

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

The peak price attained reveals the maximum buying pressure exerted during a specific timeframe.

The low price marks the bears' strongest push in that time frame.

This gold indicator uses the Low of the price & a MA (Exponential Moving Average)

The moving average(MA) represents the middle ground between sellers & buyers for a certain price period.

Hence:

Bears Power = Low Price - Exponential Moving Average

Bears Power XAUUSD Indicator - Bear Power Indicator - Is Bears Power a Leading or Lagging Indicator

Technical Analysis & Generating Signals

Sell Gold Signal

A Sell Signal is Generated When the Oscillator-Type Technical Indicator Declines Below the Zero Level.

In a down XAUUSD trend, the low falls under the exponential moving average. The indicator stays below zero, and the oscillator sits under the zero line.

Bear Power Indicator

Exit Signal

When the low price crosses over the EMA, it shows prices are starting to climb. The histogram then moves above the zero line.

Bear Power Indicator - Is Bears Power Leading or Lagging Indicator?

Regarding this indicator, the Triple Screen approach advocates determining the price trend using a larger timeframe, such as the daily chart, while employing the bears power signals on a finer interval, like the hourly chart. Trades are executed based on the lower timeframe's signals, but only if they align with the long-term XAUUSD trend observable on the higher timeframe.

Learn More Tutorials & Tutorials:

XAUUSD Broker