Bears Power Bitcoin Trading Analysis and Bears Power Bitcoin 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 btcusd price has reached a point where it might reverse.

Calculation

A Bitcoin Price bar has 4 parameters: the Opening, Closing, High and Low of the btcusd price bar.

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

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

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

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

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

Therefore:

Bears Power = Low Bitcoin Price - Exponential Moving Average

Bitcoin Trading Analysis and Generating Bitcoin Trading Signals

Sell Bitcoin 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 Signal

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

The Triple Screen method for this indicator suggests identifying the btcusd 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 the direction of the long term bitcoin trend in the higher chart time frame.