What is Bears Power Indicator? - Definition of Bears Power Indicator
Bears Power indicator - Bears Power indicators is a popular technical indicator that can be found on the - Forex Indicators List on this website. Bears Power indicator is used by traders to forecast price movement depending on the chart price analysis done using this Bears Power indicator. Traders can use the Bears Power buy and Sell Signals explained below to determine when to open a buy or sell trade when using this Bears Power indicator. By using Bears Power and other indicators combinations traders can learn how to make decisions about market entry & market exit.
What's Bears Power Indicator? Bears Power Indicator
How Do You Combine Indicators with Bears Power Indicator?
Which Indicator is the Best to Combine with Bears Power?
Which is the best Bears Power indicator combination for trading?
The most popular indicators combined with Bears Power are:
- RSI
- Moving Averages Indicator
- MACD
- Bollinger ##BandsBand
- Stochastic Indicator
- Ichimoku Kinko Hyo Indicator
- Parabolic SAR
Which is the best Bears Power indicator combination for trading? - Bears Power MT4 indicators
What Indicators to Combine with Bears Power?
Get additional indicators in addition to Bears Power indicator which will determine the trend of the market as well as others that confirm the market trend. By combining indicators that determine trend & others that confirm the trend & combining these indicators with Bears Power indicator a trader will come up with a Bears Power based trading system that they can test using a practice trading demo account on the MetaTrader 4 software.
This Bears Power based trading system will also help traders to determine when there is a market reversal based on the indicators signals generated and therefore trades can know when to exit the market if they have open trades.
What is Bears Power Indicator Based Trading? Indicator based system to interpret price & provide trading signals.
What is the Best Bears Power Strategy?
How to Choose the Best Bears Power Strategy
For traders researching on What is the best Bears Power strategy - the following learn trading tutorials will help traders on the steps required to tutorial them with coming up with the best strategy for trading market based on the Bears Power indicator trading system.
How to Create Bears Power Systems
- What is Bears Power Indicator Strategy
- Creating Bears Power Strategy Template
- Writing Bears Power Strategy Rules
- Generating Bears Power Buy and Bears Power Sell Signals
- Creating Bears Power Indicator Trading System Tips
About Bears Power Indicator Explained
Bears Power Analysis & Bears Power Signals
Created by Alexander Elder
Bears Power is used to measure power of the Bears (Sellers). Bears Power estimates the balance of power between the bulls & bears.
This technical indicator tries to spotting if a bearish trend will continue or if the trading price has reached a point where it might 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 & show the max power of the Bears within a price period.
This indicator uses the Low of the price and 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 Moving Average
Forex Analysis and How to Generate Signals
Sell Signal
A sell signal gets generated when oscillator moves below Zero.
In a down trend, the LOW is lower than EMA, so the indicator is below zero & 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 zero line.
The Triple Screen technique for this indicator suggests that spotting the price trend on a higher chart time frame interval (like daily timeframe) & applying the bears power signals on a lower chart time frame interval (like hourly timeframe). Signals are traded according to the lower time frame but only in direction of the long term trend in the higher chart time frame.
