Bears Power Technical Analysis and Bears Power Trading Signals

Developed by Alexander Elder

Bears Power is used to measure the power of the Bears (Sellers). Bears Power measures the balance of power between the bulls and bears.

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

Calculation

A Silver Price bar has four parameters: the Opening, Closing, High & Low of the price bar.

Each Silver Price bar either closes higher or lower than the previous xagusd price bar.

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

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

This indicator uses the Low of the price and a Moving Average (Exponential MA)

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

Therefore:

Bears Power = Low Price - Exponential MA

Silver Technical Analysis and Generating Trade Signals

Sell Signal

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

In a down trend, the LOW is lower than Exponential Moving Average, so the indicator is below zero and Histogram is located below zero line.

Exit Trading Signal

If the LOW moves above the Exponential Moving Average then it means that xagusd price are starting to rise, the histogram rises above the zero line.

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