Bears Power Analysis and Bears Power Signals
Developed by Alexander Elder
Bears Power is used to measure power of the Bears (Sellers). Bears Power estimatesmeasuresgaugesrates the balance of power between the bulls and bears.
This technical indicator tries to spotting if a bearish trend will continue or if the price has reached a point where it may reverse.
Calculation
A Currency Price bar has 4 parameters: the Opening, Closing, High & Low of the price bar.
Every Price bar either closes higher or closes lower than previous price bar.
The highest price will mark and show the max power of the Bulls within a price period.
The lowest price will mark and show the max power of the Bears within a price period.
This indicator uses the Low of the price & a Moving Average (Exponential Moving Average)
The moving Average illustrates the middle ground between sellers and buyers for a certain price period.
Therefore:
Bears Power = Low Price - Exponential MA
Technical Analysis and How to Generate Signals
Sell Signal
A sell signal is generated when oscillator moves below Zero.
In a down trend, the LOW is lower than EMA, so the indicator is below zero and Histogram Oscillator is located below zero line.
Exit Signal
If the LOW moves above the EMA then it means that prices are beginning to rise, the histogram rises above the zero line.
The Triple Screen technique for this technical indicator suggests that spotting the price trend on a higher chart timeframe interval (like daily chart timeframe) & 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 trend in the higher chart time frame.
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Alternatives: Automated EA Robots or Copy Paste Signals
