Bears Power Index is often used together with its twin indicator, Bulls Power Index. It is an oscillator measuring the strenght of the sellers in the market. Bears Power Index is calculated as the difference between the low and the exponential moving average for the given period (default setting is 13 periods). It is recommended that the Bears/Bulls Power Index indicators are used in conjunction with another trend indicator. If the trend indicator generates the buy signal, it is further confrimed by the Bears Power if it is below zero, but rising.
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