The Bull and Bear power indicators are tools that can help traders assess the strength of buyers (bulls) and sellers (bears) in the market1. Here's a breakdown of the components:
- Bull Power:
- Bull power is calculated by subtracting a 13-period exponential moving average (EMA) from the highest price of the current bar. A high bull power indicates strong buying interest and potential upward momentum.
- For short-term trading, a bull power value above zero suggests that buyers are pushing the price above the EMA, which could be a positive sign.
- Bear Power:
- Bear power is determined by subtracting the same 13-period EMA from the lowest price of the current bar. A high bear power indicates strong selling interest and potential downward momentum.
- In short-term trading, a bear power value below zero suggests that sellers are pushing the price below the EMA, which could indicate a potential selling opportunity.
In summary, for a good short-term stock, the bull power should be positive, indicating strong buying interest, while the bear power should be negative, indicating weak selling interest. However, it's important to consider these indicators in conjunction with other technical analysis tools and market conditions to make informed trading decisions12.
7/16/2024 07:39pm
