Bears Power
Introduction
Section titled “Introduction”Everyday trading involves buyers (Bulls) pushing prices up and sellers (Bears) pushing prices down. The outcome of this battle determines whether the day ends with a higher or lower price compared to the previous day.
The Bears Power Oscillator
Section titled “The Bears Power Oscillator”To assess the balance between Bulls and Bears, it is crucial to analyze the Bears Power. This oscillator, developed by Alexander Elder, provides insights into possible trend reversals. It is calculated by finding the difference between the lowest price and a 13-period exponential moving average (LOW - EMA).
Using the Bears Power Oscillator
Section titled “Using the Bears Power Oscillator”To enhance its effectiveness, it is recommended to combine the Bears Power oscillator with a trend indicator, such as the Moving Average.