Bears Power Bitcoin Trading Analysis & Bears Power 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 btcusd indicator aims at identifying if a bearish bitcoin trend will continue or if the bitcoin price has reached a point where it may reverse.

Calculation

A Bitcoin Price bar has 4 parameters: the Opening, Closing, High & Low of the bitcoin trading price bar.

Each Bitcoin Price bar either closes higher or lower than the previous bitcoin trading price bar.

The highest bitcoin trading price will indicate the maximum power of the Bulls within a bitcoin trading price period.

The lowest bitcoin trading price will indicate the maximum power of the Bears within a bitcoin trading price period.

This btcusd technical indicator uses the Low of the bitcoin price and a Moving Average (Exponential)

The moving Average represents the middle ground between sellers and buyers for a certain bitcoin trading price period.

Therefore:

Bears Power = Low Bitcoin Price - Exponential Moving Average

Bitcoin Analysis & Generating Trading Signals

Sell Trading Signal

A sell cryptocurrency signal is generated when the oscillator moves below Zero.

In a down btcusd trend, the LOW is lower than Exponential Moving Average, so the indicator is below zero and Histogram/Oscillator is located below zero line.

Exit Trading Signal

If the LOW moves above the Exponential Moving Average then it means that bitcoin price are starting to rise, the histogram rises above the zero line.

The Triple Screen technique for this indicator suggests identifying the bitcoin trading price cryptocurrency 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 direction of the long term bitcoin trend in the higher chart time frame.