Forex Bears Power Expert Advisor Setup - Setting Up Bears Power Expert Advisor
Forex Bears Power Expert Advisor Setup - A Forex trader can come up with an Bears Power Expert Advisor based on the awesome indicator explained below.
Forex Bears Power Expert Advisor rules can be combined with other Forex trading indicators to come up with other EA Forex Robots that trade using rules based on two or more indicators combined to form a forex trading system.
Bears Power Technical Analysis and Bears Power Forex 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 indicator aims at identifying if a bearish trend will continue or if the price has reached a point where it might reverse.
Calculation
A Currency Price bar has 4 parameters: the Opening, Closing, High and Low of the price bar.
Each Price bar either closes higher or lower than the previous price bar.
The highest price will indicate the maximum power of the Bulls within a price period.
The lowest price will indicate the maximum power of the Bears within a price period.
This technical indicator uses the Low of the price and a Moving Average (Exponential)
The moving Average represents the middle ground between sellers and buyers for a certain price period.
Therefore:
Bears Power = Low Price - Exponential Moving Average
Forex Bears Power Expert Advisor Setup
Technical Analysis and Generating Signals
Sell Signal
A sell signal is generated when the oscillator moves below Zero.
In a down trend, the LOW is lower than EMA, so the indicator is below zero and Histogram/Oscillator is located below zero line.
Forex Bears Power Expert Advisor Setup
Exit Signal
If the LOW moves above the EMA then it means that price are starting to rise, the histogram rises above the zero line.
Forex Bears Power Expert Advisor Setup
The Triple Screen method for this indicator suggests identifying the price 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 trend in the higher chart time frame.
