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Bulls and Bears indicator

Bulls and Bears Indicator

This indicator displays the currently dominating market force: Buyers (Bulls) or Sellers (Bears).  

Explaining Terms

C. Johnson was the first to write about Bulls and Bears in 1714. In his book "Country Lasses", he describes these two types of stock market participants and reveals some specifics of their trading behavior.

So, Forex bears are traders anticipating growth of the market or at least rise in the price of some particular financial instrument. The origin of the name has been inspired by the fact that bulls usually toss their enemies by their horns. Bullish traders also "toss" the prices by their aggressive buy positions. Wild bears pin their victims to the ground with all their weight. Similarly, bearish traders strive to lower the prices and increase supply. To do this, they open short positions and keep up selling till the price drops to the desired level.

Unlike the stock market, Forex deals with currency rates acting as financial instruments.

Thus, bulls and bears await currency rate rise or fall and buy or sell the base currency against the quoted one to achieve their goals.

About the Indicator

As mentioned earlier, this indicator displays the currently dominating trend.

Color Scheme:

  • Bulls - histogram. Color - DodgerBlue. It displays the time history of tendency to buy at a given time.
  • Bears - histogram. Color - Orange. It displays the time history of tendency to sell at a given time.
  • BLBR_MA - moving average. Color - White. It is based on Bulls and Bears data. The main objective is providing an additional landmark. Increasing of the average suggests that the tendency to buy is currently exceeding the tendency to sell. Decreasing suggests that the tendency to sell is currently exceeding the tendency to buy.
  • BLBR_UP and BLBR_DW - two lines forming the channel, within which BLBR_MA value varies. If BLBR_MA exits beyond the channel or touches the channel borders (BLBR_UP or BLBR_DW), then attention should be paid at this bar as High and Low prices may later serve as resistance/support levels, respectively. Also, breakdown of these levels may suggest continuation of upward/downward tendency.   

Indicator Parameters:

  • BLBRperiod - period of Bulls (DodgerBlue) and Bears (Orange) histogram data smoothing. 
  • BLBRmethod - smoothing method.
  • MA_BLBRperiod - smoothing period of BLBR_MA(White) moving average generated using Bulls and Bears data.
  • MA_BLBRmethod - moving average smoothing method.
  • Channel - true - display the channel; false - do not display the channel.

We have already mentioned BLBR_UP and BLBR_DW function together with BLBR_MA. Thus, it is recommended to use the same smoothing method, while smoothing periods should differ from each other by three or more times. In this case, histograms' smoothing period should exceed the moving average's one.

2016.06.16 08:35 

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Rodrigo da Silva Boa
2016.01.10 21:37 

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Gennadiy Sidorov
2014.05.16 07:22 

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Vadim Strelkov
2014.03.27 08:43 

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Version 1.2 - 2013.10.03
Optimize program code. Fixed an error that could lead to incorrect displaying of the indicator.
Version 1.1 - 2013.08.01
Added parameters: Channel_PrcUP and Channel_PrcDW. Using them you can adjust the deviation of the upper and the lower boundaries of the channel. The parameters are specified in percentage terms (i.e. 5 is 5%, 10 is 10%, etc.).