Bears Power Analysis and Bears Power 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 MT5 indicator aims at identifying if a bearish trend will continue or if the 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 lower than previous price bar.
The highest price will signify & show the maximum power of the Bulls within a price period.
The lowest price will signify and show the maximum power of the Bears within a price period.
This MT5 Indicator uses the Low of the price and a Moving Average (Exponential MA)
The moving Average represents the middle ground between sellers and buyers for a certain price period.
Therefore:
Bears Power = Low Price - EMA
Technical Analysis & How to Generate Signals
Sell Signal
A sell signal gets generated when the oscillator MT5 indicator MT5 indicator moves below Zero.
In a down trend, the LOW is lower than EMA, so the indicator is below zero and Histogram/Oscillator MT5 Indicator is located below zero line.
Exit Signal
If the LOW moves above the EMA then it means that price are starting to rise, the histogram rises above zero line.
The Triple Screen method for this MT5 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 timeframe interval (like hourly time frame). Signals are traded according to the lower time frame but only in direction of the long term trend in the higher chart time-frame.
