Bear’s Power Signals for Trend Assessment and Divergence
Summary
The document explains Bear’s Power, an oscillator calculated as the period low minus an exponential moving average. Values below zero are presented as evidence of bearish pressure; a move toward or above zero is interpreted as weakening bears. It recommends using the indicator alongside a trend measure and outlines how to display it in MetaTrader 5.
Three example rules compare current and previous readings to identify whether the indicator is rising or falling, compare lows and readings to label strong downward movement or bullish divergence, and combine the indicator’s sign with the close’s position relative to the EMA for buy or sell signals. The article also describes turning these rules into an MQL5 expert advisor that reports values and signals. It provides instructional rules, not empirical performance results, and explicitly advises testing before live use; it offers no evidence that the strategies are profitable.
Key ideas
- Bear’s Power is defined as the period low minus an exponential moving average.
- A rising reading is treated as a possible sign that bearish pressure is weakening.
- A lower low paired with a higher Bear’s Power reading is labeled bullish divergence.
- The proposed buy and sell rules combine the oscillator’s sign with the close’s position relative to the EMA.
- The article presents educational signal logic and recommends testing before live trading.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.