Introduction to the Bears Bulls Power Indicator
Price movements are often driven by market sentiments. These market sentiments can either be a bullish market sentiment or a bearish market sentiment. The Bears Bulls Power Indicator was developed for the purpose of capturing both bullish and bearish market sentiments and provide an objective indication regarding the short-term market sentiment direction.
What is the Bears Bulls Power Indicator?
The Bears Bulls Power Indicator is an oscillator type momentum technical indicator which is based on the Bulls Indicator and Bears Indicator.
This indicator plots histogram bars that oscillate around its midline which is zero. It plots positive green bars to indicate a bullish momentum and negative red bars to indicate a bearish momentum.
How the Bears Bulls Power Indicator Works?
The Bears Bulls Power Indicator is derived from the Bears Indicator and the Bulls Indicator, which are two individual indicators. The Bears Bulls Power Indicator simply computes for the difference between the Bears Indicator and the Bulls Indicator. It then plots its bars based on the difference between the two separate indicators. It also plots its bars green whenever the result is positive and red whenever the result is negative.
How to use the Bears Bulls Power Indicator for MT4
The Bears Bulls Power Indicator has a single variable which traders can use to modify the indicator.
The “My Period” variable refers to the number of periods used by the indicator to compute for the Bears Indicator and Bulls Indicator. This variable is used to adjust the sensitivity of the indicator. The lower the value, the more sensitive it is but its reliability decreases. Inversely, higher My Period values, the more reliable it becomes but it also becomes lagging.
The Bears Bulls Power Indicator is a short-term trend or momentum technical indicator. It can be used to identify the direction of the short-term trend. However, it is best used as a short-term trend reversal signal indicator wherein traders use the shifting of the bars from negative to positive or vice versa as a signal to buy or sell a currency pair.
Buy Trade Setup
When to Enter?
Identify a market that is in an uptrend. Allow price action to pullback and the histogram bars to temporarily change to negative. Open a buy order as soon as the histogram bars become positive again. Set the stop loss at the support below the entry candle.
When to Exit?
Close the trade as price action shows signs of a bearish reversal.
Sell Trade Setup
When to Enter?
Identify a market that is in a downtrend. Allow price action to pullback and the histogram bars to temporarily change to positive. Open a sell order as soon as the histogram bars become negative again. Set the stop loss at the resistance above the entry candle.
When to Exit?
Close the trade as price action shows signs of a bullish reversal.
Conclusion
The Bears Bulls Power Indicator can produce momentum reversal signals that can run for quite a while and produce decent yields relative to the risk placed on the stop loss. However, it can sometimes be unreliable when traded in a tight ranging market or in a choppy market condition. As such, it is best to trade its signals in a trending market with wide price swings.
MT4 Indicators – Download Instructions
Bears Bulls Power Indicator for MT4 is a Metatrader 4 (MT4) indicator and the essence of this technical indicator is to transform the accumulated history data.
Bears Bulls Power Indicator for MT4 provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust their strategy accordingly. Click here for MT4 Strategies
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How to install Bears Bulls Power Indicator for MT4.mq4?
- Download Bears Bulls Power Indicator for MT4.mq4
- Copy Bears Bulls Power Indicator for MT4.mq4 to your Metatrader Directory / experts / indicators /
- Start or restart your Metatrader 4 Client
- Select Chart and Timeframe where you want to test your MT4 indicators
- Search “Custom Indicators” in your Navigator mostly left in your Metatrader 4 Client
- Right click on Bears Bulls Power Indicator for MT4.mq4
- Attach to a chart
- Modify settings or press ok
- Indicator Bears Bulls Power Indicator for MT4.mq4 is available on your Chart
How to remove Bears Bulls Power Indicator for MT4.mq4 from your Metatrader Chart?
- Select the Chart where is the Indicator running in your Metatrader 4 Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete
Bears Bulls Power Indicator for MT4 (Free Download)
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