Bears Power Silver 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 silver technical indicator aims at identifying if a bearish silver trend will continue or if the xagusd price has reached a point where it may reverse.

Calculation

A Silver Price bar has 4 parameters: the Opening, Closing, High & Low of the xagusd trading price bar.

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

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

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

This silver technical indicator uses the Low of the xagusd price and a Moving Average (Exponential)

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

Therefore:

Bears Power = Low Silver Price - Exponential Moving Average

Silver Technical Analysis & Generating Trading Signals

Sell Silver Signal

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

In a down silver trend, the LOW is lower than Exponential Moving Average, so the indicator is below zero and Histogram/Oscillator 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 identifying the xagusd trading price silver 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 silver trend in the higher chart time frame.