Bears Power XAU USD Technical Analysis & Bears Power XAUUSD Signals
Developed by Alexander Elder
Bears Power indicator is used to estimate power of the Bears (Sellers). Bears Power estimates the balance of power between the bulls and bears.
This gold indicator aims at identifying if a bearish xauusd gold trend will continue or if the price has reached a point where it might reverse.
Calculation
A Price bar has 4 parameters: the Opening, Closing, High and 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 show the maximum power of the Bears within a price period.
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
Technical Analysis & Generating Signals
Sell Gold Signal
A sell signal is derived & generated when the oscillator technical indicator moves below Zero.
In a down xauusd trend, the LOW is lower than Exponential Moving Average, so the technical indicator is below zero and Oscillator is located below the zero line.
Exit Signal
If the LOW goes above EMA it then means that prices are beginning to rise, the histogram rises above 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 time-frame interval (like hourly chart timeframe). Signals are traded and transacted in accordance to the lower timeframe but only in the direction of the long term xauusd trend in the higher chart time-frame.
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