Bears Power Gold Trading Analysis and Bears Power Gold Trading 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 gold indicator aims at identifying if a bearish gold trend will continue or if the xauusd price has reached a point where it might reverse.

Calculation

A Gold Price bar has 4 parameters: the Opening, Closing, High and Low of the xauusd price bar.

Each Gold Price bar either closes higher or lower than the previous xauusd price bar.

The highest xauusd price will indicate the maximum power of the Bulls within a gold price period.

The lowest xauusd price will indicate the maximum power of the Bears within a gold price period.

This gold technical indicator uses the Low of the xauusd price and a Moving Average (Exponential)

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

Therefore:

Bears Power = Low Gold Price - Exponential Moving Average

XAUUSD Trading Analysis and Generating XAUUSD Trading Signals

Sell XAUUSD Signal

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

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

Exit Signal

If the LOW moves above the Exponential Moving Average then it means that xauusd price are starting to rise, the histogram rises above the zero line.

The Triple Screen method for this indicator suggests identifying the xauusd price xauusd 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 the direction of the long term gold trend in the higher chart time frame.