Trade Stock Indices

Bears Power Analysis and Bears Power Signals

Created and Developed by Alexander Elder

Bears Power is utilized to assess the strength of the Bears (Sellers). It measures the balance of power between the bulls and bears.

This stock tool helps show if a falling trend will keep going or if the price has dropped low enough that it could change direction.

Calculation

Each price bar shows four things: open, close, high, and low of the stock.

Each Price bar either closes higher or lower than the prior stock price bar.

The peak stock price will indicate the maximum strength of the Bulls during a specific price period.

The lowest stock price will reflect the maximum power of the Bears within a price period.

This stock indicator uses the Low of the stock price & a Moving Average (Exponential Moving Average)

The moving average signifies the equilibrium point between sellers and buyers over a specified price duration.

Therefore:

Bears Power = Low Price - Exponential MA

Bears Power - Bear Power Indicator

Index Analysis and How to Generate Signals

Sell Signal

A sell stock signal is generated/derived when the oscillator crosses below Zero.

In a downtrend, the low sits below the exponential MA. The indicator drops under zero, with the histogram there too.

Bears Power Stock Indicator Analysis - Bear Power Indicator

Exit Signal

If the stock's LOW surpasses the Exponential Moving Average (EMA), it suggests that stock prices are commencing an uptrend, further affirmed by the histogram rising above the zero baseline.

Bears Power Stock Indicator - Bear Power Technical Indicator

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

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