Bulls Power and Bears Power indicators are displayed differently on the MT4 and LiteFinance trading terminals. On the LiteFinance platform, they are full-body bars overlapping each other. MetaTrader 4 offers vertical lines corresponding to each candlestick. If the Bears Power indicator (Low – EMA) is below zero, it means sellers were able to drive price below the EMA. If the Bears Power indicator is above zero, it means buyers were able to keep the lowest price above the EMA.

I opened a trade on the second green candlestick (blue arrow). The first target is located in the middle of the channel (the first blue line). Here you can close half of the position and protect the remaining 50% with a trailing stop order or place a take-profit order at this level. You can determine a stop-loss and trailing stop levels depending on your risk management. The second target is at the channel’s opposite boundary. The strategy implies capturing the moment of channel narrowing after its expansion.

If the price continues to rise due to the momentum in the market, it is a divergence – a reinforcing signal confirming the imminent reversal to the downside. The Bears Power indicator (BE) shows the gradual decline of the sellers’ strength. The buy signal is weak, there could be a probability of a loss.

• Both histograms are located below the price chart.
• In essence, Bulls Power and Bears Power are irregular oscillators.
• This shows the value of using the Bull Bear Power Indicator.

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EMA (13) is aiming downwards; a downtrend has already started or is just Bull bear power beginning. Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading!

How to Trade with Bulls Power and Bears Power Indicators?

The usual course of action is to trade in the direction of the EMA. The high of the consensus of value occurs when bulls cannot lift prices any higher. The low represents the lowest value to which the bears are capable of pushing the price.

The Elder-Ray Index

Equally important is the slope of the EMA, as the direction indicates the general trend. Bear power is the capacity of bears to push prices below the moving average. The distance between the low and the EMA, which widens when the bears are weaker and narrows when they are stronger, gives this figure. Bear power is typically negative, so if it turns positive, the bulls have taken control. Traders commonly follow the slope of a moving average.

Uso del indicador Bulls Power y Bears Power en MetaTrader 4

He was an author and trader with a revolutionary approach to technical analysis. His work changed the way traders view market strength and the indicator has become a staple for many. In essence, Bulls Power and Bears Power are irregular oscillators. They appear in separate windows under the price chart. They look like bar histograms with the central line at zero. To determine the direction of the active trend, Elder recommends adding to the chart an EMA (13), drawn by close prices.

• The factors in question are quite sensitive to market volatility.
• Both trend indicators are among the basic indicators on most trading platforms.
• On the trading platform, Index Bull Bull Bear Power are two different indicators.
• In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality.
• Let us now look at a real-life story that shows the effectiveness of the Bull Bear Power Indicator.
• Place a Stop Loss behind the local low on the price chart and take your profit when a strong resistance area is reached or some evidence of a reversal downwards appears.

Bull and bear power indicators are oscillator-type indicators that measure bears’ and bulls’ strength in the market. In general, they show buyers’ and sellers’ strength in certain periods, confirming the signals from trend indicators. This data is insufficient to build a trading strategy.

In 24 hours, the trade generated more than 2.5 USD in a strong uptrend. The arrow indicates the candlestick where the trade was opened. There are some very specific conditions you need to look for when using the Elder-ray in making buying/selling and shorting/covering decisions. By following these tips, you can maximize the effectiveness of the Bull Bear Power Indicator. Always be cautious and use multiple indicators before executing any trades. Dr. Alexander Elder created it as a modification of the Moving Average Convergence Divergence.

USD/CAD: Analysis of the Current Trend and Expert Forecasts for 2024

If you are a trader who uses oscillators and would like insight as to how the market might be about to shift, then this could be useful to you. However, it is necessary to choose different EMA values for each market and asset. In addition, the accuracy of indicator signals depends on the selected time frame and market volatility. The difference lies in the calculation formula and in what the indicators display.

It allows for choosing the type of price used for the calculation. It is also possible to change the moving average settings and style by making a line thickness and color convenient for the user. Setting price levels is especially helpful when a trader needs to study the history of the strongest trend movements. On the MetaTrader4 platform, the bull & bear indicator is displayed as vertical lines, with each line corresponding to a specific candlestick. Divergences between bull power indicator and prices indicate the best trading opportunities. This indicator is used together with a trend indicator (mostly Moving Average).

Cálculo de indicadores Bulls Power y Bears Power

Analyze the indicator’s trend to identify potential buying or selling. Any information contained in this site’s articles is based on the authors’ personal opinion. These articles shall not be treated as a trading advice or call to action.