Bears Power - Bulls Power
This indicator aims to identify underlying movements, which are not obvious from through other techniques. It is concerned with Exponential Moving Averages (EMA), and has two key components being the “bull power” and “bear power”. The aim is to identify whether the buyers or sellers in the market have the power. The ideal period suggested for this indicator is 13 days. Bull PowerThe buyers in the market are trying to raise the price of the instrument hence if the price at the end of the market session (or at any point) is above the EMA then they are succeeding in raising the price. Bull Power = Highest Price (in time period) – EMA Bear PowerIn contrast the sellers in the market are trying to lower the price of the instrument. Bear Power = Lowest price (in time period) – EMA It is therefore important to identify the whether the Bears (Sellers) or Bulls (Sellers) have the power to establish when there may be a change is the market trend.
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