Use Bears Power Indicator to catch the downtrend

Bears Power indicator Define and Using Guide
Bears Power indicator Define and Using Guide

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Bears Power indicator

The Bears Power (BP) indicator tells you the dynamics of prices, which can show when a price has fallen. The accuracy of this indicator is only at 6/10, normally used to ensure other indicators are correct.

The BP indicator only includes the BP line fluctuating up and down cross the Zero line.

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Calculate Bears Power

The formula to calculate Bears Power is the difference of the EMA(13) and the LOW price:

BP(n) = LOW – EMA(n)


How to use the Bears Power indicator

Bears Power cuts the Zero line

When the Bears Power line crosses the Zero line, this is a signal that the bullish momentum of the price has decreased, the price will start to decline. Now you need to analyze whether you should sell or not. Do not delay, because only a moment the price will drop very quickly.


Bears Power is a bearish

Just note that it will work well only when the price is down. Therefore, it can only be used for transactions related to reduced prices. You should use Bulls Power, the opposite of Bears Power if you want to predict when prices will rise.

Combine different indicators

You can combine EMA, SMA, Bollinger Band to determine the correctness of the Bears Power indicator. Increase accuracy for prediction. The more complex indicators combine, the more accurate your choice.


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Use Bears Power Indicator to catch the downtrend
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