Introduction:
As we know, the Forex market is made up of the "bull" (sellers who want to raise the price up) and "bear" (customers who are trying to lower the price.) At the end of the day, we can infer what force was dominated throughout the trading day.
Bearish Force shows the balance of power and is very important. To change the indicator data can accurately predict the future movement of commercial graphics and accordingly conclude in time most convenient order, which will bring the best return. This indicator was invented by Alexander Elder and quickly became popular among traders.
Description of indicator:
Strength Indicator "bear" refers to the oscillator. Schedule of this indicator is the histogram. The default settings for the trader can replace only the color histogram. When using the indicator is important to know a couple of statements that for many years have been postulates:
1. The moving average is a kind of a price agreement between buyers (bears) and sellers (bulls) during a certain point.
2. The minimum price of the trading day reflects the maximum power of the "bears" for that same trading day.
3. The maximum price of the trading day reflects the minimum force "bears" for the day.
The calculation of these indicators:
Based on the precepts that are given above, the inventor created the indicator «Bears Power» as the difference between the minimum price and the exponential, 13 periodyvym moving average. The formula of this indicator is as follows:
BEARS = LOW - EMA
Where:
BEARS - the power of buyers (bears)
LOW - the lowest price candlestick (or bar)
EMA - moving, exponential, the average 13-periodyvoe
The use of the indicator:
Bearish Force gives a much better result, when there are other indicators. To confirm the indicator signals «Bears power» needs indicator moving average, also the value used in the calculation. But the greatest combination of performance gives strength indicator bears with Bullish Force. This is a significant impact on forecasting, at the same way as you can see and power sellers.
Of the indicator «Bears power»:
This indicator gives clear signals to buy and sell financial instruments.
Buy signals. Must provide the upward trend (determined by the moving average). The most proven buy signal when the oscillator strength of bears negative and begins to grow. If the Bears Power oscillator is positive, it is best not to buy.
Sell signals. Must provide a down trend. Bears Power oscillator is positive, but decreases gradually, it is the best buy signal. Also, if the last trough in the oscillator is lower than the previous sell a financial instrument.
The bottom line:
Bearish Force is a useful indicator that serves many signals. So it must be armed and able to use it properly. Note that this indicator is more effective in conjunction with other indicators