Bears Power CFD Technical Analysis & Bears Power CFD 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 & bears.
This cfd indicator aims at identifying if a bearish cfd trend will continue or if the cfds price has reached a point where it may reverse.
Calculation
A CFD Price bar has 4 parameters: the Opening, Closing, High & Low of the cfds price bar.
Each CFD Price bar either closes higher or lower than the previous cfds price bar.
The highest cfds price will indicate the maximum power of the Bulls within a cfds price period.
The lowest cfds price will indicate the maximum power of the Bears within a cfds price period.
This cfd technical indicator uses the Low of the cfds price & a Moving Average (Exponential)
The moving Average represents the middle ground between sellers and buyers for a certain cfds price period.
Therefore:
Bears Power = Low CFD Price - Exponential Moving Average
CFDs Technical Analysis & How to Generate CFDs Signals
Sell CFDs Signal
A sell cfd signal is generated when the oscillator moves below Zero.
In a down cfd trend, the LOW is lower than EMA, so the indicator is below zero & Histogram/Oscillator is located below zero line.
Exit Trading Signal
If the LOW moves above the EMA then it means that cfds price are starting to rise, the histogram rises above the zero line.
The Triple Screen method for this indicator suggests identifying the cfds price cfds 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 cfd trend in the higher chart time frame.
