The Bears Power indicator for MetaTrader 5 is a trend oscillator developed by Alexander Elder to assess the ability of sellers (bears) to influence the price of a financial instrument in the market. In essence, it is a trading tool designed to detect an increase or decrease in the activity of sellers in the market.
The indicator evaluates the strength of the bears, taking into account the difference between the value of the 13-period exponential moving average and the lowest price moved by the bar.
Therefore, an increase in the strength of bears depicts when the bars of the indicator histogram cross below the zero line, and bars above the zero line signal a decrease in the strength of the bears.
How to Trade with the Bears Power indicator for MT5
The image above shows the action of the Bears Power indicator on AUDNZD on the H1 timeframe. Regarding this indicator, initoce that it does not generate buy or sell signals. So, it is essentially a technical guide that tells you when to enter or exit the market based on the actions of the bears.
So, for example, you might look for selling opportunities when the histogram bars drop below the zero line, indicating bearish dominance in the market. Conversely, you can close a sell position in anticipation of a trend reversal when the indicator deviates from the market price, as shown in the image above.
Setting
Period: Input the bears period value to adjust the indicator’s sensitivity and the signal frequency.
Conclusion
We recommend the Bears Power Indicator for MT5 for both beginner/intermediate and advanced forex traders in their daily trading activities. Moreover, the indicator can be downloaded for free.