Bears Power Analysis and Bears Power Signals
Developed and Created 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.
Lowest Stock Prices Show Peak Bear Strength in Any Time Frame.
This particular stock indicator utilizes the lowest price reached by the stock and an Exponential Moving Average (EMA).
The moving average signifies the equilibrium point between sellers and buyers over a specified price duration.
Therefore:
Bears Power = Low Price - Exponential MA
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.
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.
The Triple Screen way of doing things for this trading indicator says to find the direction of the stock price on a chart with bigger time periods (like a daily chart) and use the bears power signals on a chart with smaller time periods (like an hourly chart). Trades happen based on the shorter time frame, but only if they match the overall direction shown on the chart with the bigger time frame.
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