Bears Power Technical Analysis and Bears Power Signals
Created 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 forex trend will continue or if the forex price has reached a point where it might reverse.
Calculation
A Currency Forex Price bar has 4 parameters: the Opening, Closing, High and Low of the forex price bar.
Each Forex Price bar either closes higher or lower than the previous forex price bar.
The highest forex price will signify and show the maximum power of the Bulls within a forex price period.
The lowest forex price will signify and show the maximum power of the Bears within a forex price period.
This MT5 Indicator uses the Low of the forex price and a Moving Average (Exponential)
The moving Average represents the middle ground between sellers and buyers for a certain forex price period.
Therefore:
Bears Power = Low Forex Price - Exponential Moving Average
FX Technical Analysis & How to Generate Signals
Sell Trading Signal
A sell signal is 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 Forex Signal
If the LOW moves above the EMA then it means that forex price are starting to rise, the histogram rises above the zero line.
The Triple Screen method for this MT5 indicator suggests identifying the forex 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 time frame but only in direction of the long term forex trend in the higher chart time frame.
