Bear Power
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Description
According to Elder (1993) Bear Power reflects the Bears' (who make money in a falling market) ability to push prices lower. It is calculated as the difference between the low price and an exponential moving average over a term you determine. Bear Power would be negative except in the presence of very strong bullish forces near the turning point of a bullish market.
According to Elder, a trading signal is given when the exponential moving average is trending up and the Bear Power is negative but rising.
To confirm the signal, Elder uses Bear Power in conjunction with Bull power.
You may wish to add some type of Moving Average to this indicator's graph.
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