Bears Power
Bears Power
Sellers (bears) and buyers (bulls) participate in market bargaining, and their everyday struggle ends up with higher or lower closing price in comparison to the previous day. This struggle occurs because the bulls strive to increase price and push it down from bears' side.Bears Power technical indicator was invented by Alexander Elder. It is used to estimate the balance of bears power, and with its own fluctuations, points out possible changes in trends. The indicator is based on difference between minimal price LOW and 13-periods exponential moving average EMA.
Bears Power is often used together with trend indicators. Signal to buy appears when trend indicator goes up; index of Bears power goes up too although staying below nought line. It is desirable for the divergence of bottoms on the indicator graph to form.
Similar information about indicators you can find in information system of trade platform MetaTrader 4 (Help-> Help Topics [F1] -> Ananlitics -> Technical Indicators).
