Input Information
| Name | Expression | Default | Description |
Market Synopsis
Table of Contents
Introduction
The Bears Power Indicator is a technical analysis tool used to measure the strength of the bears in the market. It was developed by Alexander Elder, a well-known trader and author.
Definition
The Bears Power Indicator measures the market’s ability to push prices lower. It is calculated by subtracting the 13-period exponential moving average (EMA) from the high price of the period being analyzed. In other words, it measures the selling pressure in the market.
Calculations
To calculate the Bears Power Indicator, use the following formula:
Bears Power = High – 13-period EMA
Interpretation
When the Bears Power Indicator is above zero, it indicates that the bears have control over the market. The higher the indicator, the stronger the bearish momentum. Conversely, when the indicator is below zero, it indicates that the bulls have control over the market.
Traders can use the Bears Power Indicator to identify potential trend reversals. If the indicator starts to rise while the price of an asset is falling, it could mean that a bullish reversal is imminent. On the other hand, if the indicator starts to fall while the price is rising, it could signal a bearish reversal.
Example
Let’s say the high price of an asset for a period is $100 and the 13-period EMA is $90. The Bears Power Indicator would be calculated as follows:
Bears Power = $100 – $90 = $10
If the Bears Power Indicator continues to rise over several periods, it would indicate that the bears are gaining more control over the market.
Conclusion
The Bears Power Indicator can be a useful tool for traders looking to identify potential trend reversals in the market. By measuring the strength of the bears, traders can gain insight into the overall direction of the market and make more informed trading decisions.
Table of Contents
- Introduction to Bear Power Indicator
- How Bear Power Indicator Works in Crypto
- Interpreting Bear Power Indicator Readings
- Using Bear Power Indicator in Trading Strategies
- Limitations and Risks of Bear Power Indicator
- Conclusion
Introduction to Bear Power Indicator
Bear Power Indicator is a technical analysis tool used to measure the strength of bears in the market. It was developed by Dr. Alexander Elder, a renowned trader and author of several trading books.
How Bear Power Indicator Works in Crypto
In crypto trading, Bear Power Indicator compares the closing price with the lowest price of the day, and calculates the difference between them. The result is then plotted on a chart to show the bearish strength of the market.
Interpreting Bear Power Indicator Readings
A positive reading indicates that bears are losing strength, while a negative reading shows that bears are gaining control of the market. Traders use this information to make informed decisions about buying or selling their assets.
Using Bear Power Indicator in Trading Strategies
Bear Power Indicator can be used in combination with other technical analysis tools to create effective trading strategies. For example, when combined with moving averages, traders can identify potential entry or exit points.
Limitations and Risks of Bear Power Indicator
As with any technical analysis tool, Bear Power Indicator has its limitations and risks. It is not always accurate, and traders should not rely solely on it for making trading decisions. Additionally, it may not work well in volatile or choppy markets.
Conclusion
Bear Power Indicator is a useful tool for traders to analyze market trends and make informed decisions. However, it should be used in combination with other tools and indicators, and traders should always exercise caution and risk management.
Plot Information
| Number | Name | Default Color | Description |
Indicators
- Accumulation Swing Index ASI
- Accumulation/Distribution AD
- Adaptive moving average
- Alligator (Gator_2)
- Alligator (Gator)
- Aroon Down Indicator
- Aroon Oscillator
- Aroon Up Indicator
- Average Directional Movement Index ADX
- Average True Range- ATR
- Awesome Oscillator
- Bears Power
- Bollinger Bands-BB
- Bubi Candles
- Bulls Power
- BW-ZoneTrade-BWZT
- Chaikin Oscillator
- Chaikin Volatility-CHV
- ColorBars
- ColorLine
- Commodities Channel Index- CCI
- Crossover of Moving Averages
- Demarker Indicator
- Detrended Price Oscillator-DPO
- Directional Indicators-DI
- Directional Movement Index-DMI
- Disparity Index
- Double exponential moving average
- Double Exponential Moving Average DEMA
- Dynamic Support and Resistance
- Envelopes
- Exponential Moving Average-EMA
- Force Index
- Fractal Adaptive Moving Average-FrAMA
- Fractals
- Heikin Ashi
- Ichimoku Kinko Hyo (ichimoku)
- Keltner channel
- Market Facilitation Index
- Mass Index indicator (MI)
- McClellan Oscillator
- Momentum
- Money Flow Index MFI
- Moving Average
- Moving Average Convergence/ Divergence MACD MAC D
- Moving Average MV
- Moving Average of Oscillator
- On Balance Volume OBV
- Oscillator of a Moving Average OsMA ( MACD Histogram)
- Parabolic
- Parabolic SAR
- Price and Volume Trend (VPT) Indicator
- Price Channel Indicator
- Range Indicator
- Rate of Change ROC
- Relative Strength Index RSI
- Relative Vigor Index RVI
- Simple Moving Average SMA
- Smoothed Moving Average SMMA Custom Moving Average
- Standard Deviation (StdDev)
- Stochastic Oscillator
- The triple exponential average TRIX indicator
- Triple Exponential Average
- Triple Exponential Moving Average TEMA
- Triple Moving Average Crossover
- True Strength Index TSI
- Ultimate Oscillator
- Variable index Dynamic Average (VIDYA)
- Volume Rate of Change VROC
- Weighted Moving Average WMA
- Williams’ Percent Range-Williams %R Larry Williams Percentage Range (WPR)
Fundamental Summary
- Coming soon!!
Technical Summary
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