Bears Power Forex Technical Analysis and Bears Power Signals
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 technical indicator aims at identifying if a bearish trend will continue or if the market price has reached a point where it may reverse.
Calculation
A Currency Price bar has four parameters: the Opening, Closing, High & Low of the price bar.
Each Price bar either closes higher or closes lower than previous bar.
The highest price will show the maximum power of the Bulls within a price period.
The lowest price will show the maximum power of the Bears within a price period.
This indicator uses the Low of the price and a MA (Exponential MA)
The moving Average represents the mid ground between the sellers and buyers for a certain price period.
Therefore:
Bears Power = Low Price - Exponential Moving Average
Forex Analysis and Generating Signals
Sell Signal
A sell signal is generated when 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 Signal
If the LOW moves above the Exponential MA then it means that prices are beginning to rise, the histogram rises above the zero line.
The Triple Screen strategy for this technical indicator suggests spotting the price trend on a higher chart timeframe interval (like daily chart timeframe) & applying the bears power signals on a lower chart timeframe interval (like hourly chart timeframe). trading Signals are traded according to the lower time frame but only in direction of the long term trend in the higher chart time frame.
What is a Trading Plan? - Writing a Plan Example Template
Alternatives: EA Automated Robots or Copier Trading Signals
