Purpose of Bears Power
Bears Power, developed by Alexander Elder, measures how strongly sellers can push price below its average. It is the difference between the candle's low and an exponential moving average. The more negative the value, the stronger the sellers.
How It Works
When you select Bears Power in the Trade Rule block, you can configure it with the following settings:
Period of Bears Power
The number of candles used for the exponential moving average (standard: 13).
Time Frame of Bears Power
Sets the chart time frame for the Bears Power calculation.
Can be replaced with a variable or input for quick testing and optimization.
Candle ID of Bears Power
Defines which candle the calculation starts from.
0: Current candle (still forming).
1: Most recently closed candle.
Higher IDs refer to older candles.
Adjust of Bears Power (Modify the Result)
Apply an adjustment to the calculated value by adding, subtracting, multiplying, or dividing by a number.
Example
If you set:
Period: 13
Candle ID: 1
You get the Bears Power value of the most recently closed candle. A value that is negative but rising toward 0 suggests sellers are losing strength.
Use Cases
Detect weakening sellers when Bears Power is negative but rising.
Combine with a trend filter to buy dips in an uptrend.
Use together with Bulls Power for a full picture of buyers and sellers.
⚠ Tip: Bears Power is usually negative. Look at its direction and its distance from 0, rather than at a fixed number.