Bears Power Bitcoin Analysis & Bears Power Trading Signals

Developed by Alexander Elder

Bears Power is used to gauge power of the Bears (Sellers). Bears Power measures 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 four parameters: the Opening, Closing, High & Low of the bitcoin price bar.

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

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

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

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

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

Therefore:

Bears Power = Low Bitcoin Price - Exponential MA

Bitcoin Analysis & Generating Signals

Sell 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 is located below zero line.

Exit 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 spotting the bitcoin price trend on a higher chart interval (like daily time frame) and applying the bears power signals on a lower chart timeframe interval (like hourly timeframe). 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.