Trading participants are sellers (bears) and customers (bulls) whose struggle leads to higher or lower closing rate every day comparatively to the next day. This struggle is empowered by the sellers’ desire to increase the price and the buyers’ desire to make the rates fall.
Technical indicator Bears Power, designed by Alexander Elder, assesses the balance of the bears power and indicates possible trend direction change. The indicator is based on the difference of the minimal L price and 13-grade EMA exponential moving average.
Bears Power is normally used with trend indicators. Purchase signal appears once the trend indicator is going up and the bears power below zero are growing.
