Bears Power Energies Technical 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 and bears.

This energies indicator aims at identifying if a bearish energies trend will continue or if the energies price has reached a point where it may reverse.

Calculation

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

Each Energies Price bar either closes higher or lower than the previous energies price bar.

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

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

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

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

Therefore:

Bears Power = Low Energies Price - Exponential Moving Average

Energy Technical Analysis & How to Generate Trading Signals

Sell Trading Signal

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

In a down energies trend, the LOW is lower than EMA, so the indicator is below zero and Histogram/Oscillator is located below zero line.

Exit Trading Signal

If the LOW moves above the EMA then it means that energies price are starting to rise, the histogram rises above the zero line.

The Triple Screen method for this indicator suggests identifying the energies price 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 energies trend in the higher chart time frame.