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