Popular Posts

Editor'S Choice - 2020

Bears Power Indicator

Bears Power indicator is an oscillator that reflects the power of "bears" in the currency market, invented and written by Alexander Elder (a professional trader and consultant on stock trading issues). This indicator makes it possible to determine the ratio of purchases to sales, representing the difference in the minimum value for a certain period of time and the 13-period moving average, which was obtained exponentially.

Bears Power indicator is expressed by the following formula:

BEARS = LOW-EMA. Here: BEARS is the market power of the bears, LOW stands for the minimum value of the current bar, EMA is an exponential moving average.

Given that the volume indicator (VOLUME) is not used in the process of performing the calculations, there is a high probability of error, which should always be remembered.

It is precisely because of the possibility of errors in the strategy on the Bears Power indicator that is most often used in combination with additional indicators (trend indicators, for example). Thus, the divergence between the Bulls Power and Bears Power oscillators and price charts shows the ideal time to open positions in the foreign exchange market.

Forex Bears Power indicator is graphically presented as a single-color bar chart. Columns below the zero line indicate a downtrend. If the columns are located above the zero line - it speaks of a bullish market sentiment.

Forex indicator strategies are quite widespread among traders, therefore every trader who is focused on training and successful work should be able to work with indicators. When it comes to Bears Power, its creator, Alexander Elder, recommends opening deals if the EMA direction shows an upward movement in the market, but the indicator in question has a negative value, while, nevertheless, it grows (especially after bullish divergence). That is, the cost drops from a minimum to an even lower minimum, and Bears Power's new lows at this time are higher than the previous ones.

If this Metatrader 4 indicator shows a positive value, it is advisable to refuse purchases. A sell order is set according to the Bulls Power oscillator. In general, the Bears Power indicator can be quite useful in your work if you know how to use it.

Similar articles:

Leave Your Comment