Bulls Power and Bears Power are oscillators. Both tools were developed by Alexander Elder.
They are direct opposites of each other by the type of signals they generate. Due to this difference the indicators complement each other, so they are most often used together.
The Bulls Power indicator shows the strength of the bulls in the market. If they are more than “bears”, an uptrend is established. Bears Power demonstrates the power of “bears”. If the market is dominated by them, a downtrend is established.
In all other respects, these oscillators are the same. Both instruments are calculated on the basis of the EMA. On the chart, they are most often displayed as a line or a histogram.
These indicators are used to determine the direction and strength of the trend, find price reversal points and identify divergences. The instruments can be used on any time frame. They are suitable for short-term and long-term trades.
Bulls Power and Bears Power are simple and clear oscillators, their signals are easy to read. It will be convenient for both experienced and novice traders to work with them.
