Bear Power
Bear Power is part of Alexander Elder's Elder-ray system and shows how strong the sellers are compared with an exponential moving average (EMA). It measures how far the intraday lows fall below the average price and highlights moments when the bears lose control.
Use the BearPower class to access the indicator.
Description
The indicator is calculated as the difference between the bar low and the EMA value:
Bear Power = Low − EMA.
- Negative readings confirm selling pressure.
- Rising values toward zero or above zero indicate weakening bears and a possible bullish reversal.
- Deep troughs often precede rebounds, especially during panicky sell-offs.
Parameters
Bear Power inherits the configuration of ExponentialMovingAverage:
- Length — EMA period.
- Alpha (optional) — smoothing coefficient if the EMA is configured this way.
Usage
- Look for reversals when Bear Power turns upward after an extreme low while the EMA starts to rise.
- Crossing the zero line may confirm a change in the prevailing trend.
- Combine Bear Power with Bull Power and the price EMA to build the full Elder Ray indicator.
