Bears Power Expert Advisor Setup - Setting Up Bears Power Expert Advisor
Bears Power Expert Advisor Setup - A trader can come up with an Bears Power Expert Advisor based on the awesome indicator explained below.
Bears Power Expert Advisor rules can be combined with other indicators to come up with other EA Bots that trade using rules based on two or more indicators combined to form a trading system.
Bears Power Analysis & Bears Power Signals
Created by Alexander Elder
Bears Power is used to estimate the power of the Bears (Sellers). Bears Power gauges the balance of power between the bulls and bears.
This technical indicator tries to identifying if a bearish trend will continue or if the market price has reached a point where it might reverse.
Calculation
A Currency Price bar has four parameters: the Opening, Closing, High and Low of the price bar.
Each Price bar either closes higher or closes lower than previous bar.
The highest price will signify & show the maximum power of the Bulls within a trading price period.
The lowest price will signify & show the maximum power of the Bears within a trading price period.
This technical indicator uses the Low of the price & a MA (Exponential MA)
The moving Average represents the mid ground between sellers & buyers for a certain price period.
Therefore:
Bears Power = Low Price - Exponential Moving Average
Bears Power Expert Advisor Setup
FX Analysis & Generating Signals
Sell Signal
A sell signal is generated when oscillator moves below Zero.
In a down trend, the LOW is lower than Exponential Moving Average, so the indicator is below zero and Oscillator is located below zero line.
Bears Power Expert Advisor Setup
Exit Signal
If the LOW moves above the Exponential Moving Average then it means that the price are starting to rise, the histogram rises above the zero line.
Bears Power Expert Advisor Setup
The Triple Screen method for this technical 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 interval (like hourly time-frame). Signals are traded according to the lower timeframe but only in the direction of the long term trend in the higher chart timeframe.
