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Trading is the game of bulls and bears fighting with each other and traders analyzing and predicting who is going to win at the end of the day.
Today in this article I am going to talk about the bear power indicator which helps us to analyze the bear power balance. In my previous article, I covered the Bull power indicator in case you have not read it yet click here.
What is the bear power indicator?
Bear power indicator formula= Low – EMA (13period)
Low = the lowest point of the current bar
EMA = Exponential Moving Average
- This indicator was developed by Dr Alexander Elder in 1989. His main objective in introducing this indicator was to help traders in analysing the market like an X-Ray machine.
- The Bear power indicator is just the opposite of the Bull power indicator.
- This indicator represents the strength of bears or sellers and the main purpose of this indicator is to measure the strength of the seller in front of the buyer.
How to set Bears Power Indicator on Pocket Option
To set Bears Power indicator on Pocket Option.
- Login to your Pocket Option account. In case you don’t have click here.
- Click the indicator button.
- Search the indicator name
- Click the name and configure.
How to use Bears power Indicator on Pocket Option
Trading with the indicator is as easy as trading with the Bulls power indicator. this indicator uses only one EMA line of normally 13 periods that floats around a ” 0 ” line the moment when the EMA line intersects the “ 0 “ line is the moment indicator generates the buy and sell signal.
Example: As you can see above, when the EMA (green) line intersects the “ 0 “ line from the top and later stays below the same it is an indication of the upcoming bearish trend and here you can place a sell trade here.
Bulls and Bears Power Indicator
You can use bulls power and bears power indicators together.
When the EMA line in the bull power indicator intersects the “ 0 “ line from the bottom and stays above the same it is a signal of an upcoming bullish trend. here, you can place a buy trade for a long duration.
Similarly, when the EMA line intersects the “ 0 “ line from the bottom and later stays above the same is an indication of an upcoming bullish trend and here we can place a buy trade with a long duration.
So, this is the end of this article, I hope you have found this article helpful. I will highly suggest to try this trading strategy on Pocket Option demo account you will get $10, 000 free virtual chips where is more than enough to try this strategy.
I wish you a very best of luck 🙂