Bears Power Commodities Analysis and Bears Power Trading Signals

Developed by Alexander Elder

Bears Power is used to estimate the 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 commodity trend will continue or if the trading price has reached a point where it may reverse.

Calculation

A Price bar has four parameters: the Opening, Closing, High & Low of the trading price bar.

Each Commodities Price bar either closes higher or lower than the previous trading price bar.

The highest trading price will signify and show the maximum power of the Bulls within a trading price period.

The lowest trading price will signify and show the maximum power of the Bears within a trading price period.

This technical indicator uses the Low of the trading price & a MA (Exponential MA)

The moving Average represents the middle ground between sellers and buyers for a certain trading price period.

Therefore:

Bears Power = Low Commodities Price - Exponential Moving Average

Commodities Analysis and How to Generate Trade Signals

Sell Trading Signal

A sell commodity signal is generated when the oscillator moves below Zero.

In a down trend, the LOW is lower than Exponential Moving Average, so the indicator is below zero and Oscillator is located below zero line.

Exit Trading Signal

If the LOW moves above the EMA then it means that trading price are starting to rise, the histogram rises above the zero line.

The Triple Screen strategy for this indicator suggests spotting the trading price trend on a higher chart interval (like daily time frame) and applying the bears power signals on a lower chart interval (like hourly chart time-frame). trading Signals are traded according to the lower time frame but only in direction of the long term trend in the higher chart timeframe.