It is very important to be able to estimate the Bears Power balance since changes in this balance initially signalize about possible trend reversal. This task can be solved using the Bears Power oscillator developed by Alexander Elder and and described in his book "Trading for a Living: Psychology, Trading Tactics, Money Management". Elder based on the following premises when deducing this oscillator:
On these premises, Elder developed Bears Power as the difference between the lowest price and 13-period exponential moving average (LOW - EMA).
Author: MetaQuotes Software Corp.
Bears Power Indicator