TRADING MANUAL - Bears Power Indicator, How to Use It and Free to Download
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 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 4 parameters: the Opening, Closing, High and Low of the price bar. Each Price bar either closes higher or lower than the previous price bar.
- The highest price will indicate the maximum power of the Bulls within a price period.
- The lowest price will indicate the maximum power of the Bears within a price period.
This technical Indicator uses the Low of the price and a Moving Average (Exponential). The moving Average represents the middle ground between sellers and buyers for a certain price period.
Therefore:
Bears Power = Low Price – Exponential Moving Average
Technical Analysis of Bears Power Indicator
Sell Signal
A sell signal is generated when the 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 price are starting to rise, the Indicator histogram rises above the zero line.
The Triple Screen method for this indicator suggests identifying the
price trend on a higher chart interval (like Daily charts) and applying
the bears power indicator on a lower chart interval (like Hourly
charts). Signals are traded according to the indicator but only in the
direction of the Forex price trend in the higher chart time-frame.
Free to Download
- Bears Power - indicator for MetaTrader 5
- Total Power Indicator - indicator for MetaTrader 5
- Bears Bulls Power - indicator for MetaTrader 4
- Bears Power, Bears - indicator for MetaTrader 4
