Bull Bear Power Indicator

Let’s understand this indicator.

Himayin natin at intindihin kung paano gamitin.

Heto ang definition niya.

Definition

The Bull Bear Power (BBP) indicator, otherwise known as the Elder-Ray Index, estimates the relationship between the strength of bulls (buyers) and bears (sellers) on an instrument. When the indicator’s value is nonzero, it supposedly suggests that either bulls or bears have more power in the market. The greater the distance is from zero, the greater the apparent dominance of bulls or bears. Positive values indicate higher bull power and negative values indicate higher bear power.

Calculations

The indicator’s calculation consists of two separate components: “Bull Power” and “Bear Power”. The “Bull Power” value is the difference between the current high price and the EMA of close prices, and the “Bear Power” value is the difference between the current low price and the same EMA. Taking the sum of the “Bull Power” and “Bear Power” gives us the Bull Bear Power value:

Bull Power = High – EMA

Bear Power = Low – EMA

Bull Bear Power = Bull Power + Bear Power

Ano Nga Ba Ito?

 BBP estimates the relative strength of buyers versus sellers in the market at any given time. 

Kinukumpara niya ang EMA sa high at low na price ng candle.

Yung default ng indicator na ito ay 13 meaning exponential average ng 13 days na price ang gamit niya.

Lets say nasa 14th day tayo ngayon ng trading. Ang ginagawa ni BBP ay kinukumpara niya ang average price ng past 13 days sa high price today. Kinukumpara niya din ang average ng past 13 days na price sa low price today.

Lets say ang average or ang EMA ng past 13 days ay 7 pesos. Ang high price today ay 8 pesos. Ang low price today ay 7.5 pesos. Ano ibig sabihin nito?

It tells you na yung price today ay higher sa average price ng past 13 days. Meaning niyan ay mas maraming willing buyers na bumili sa higher price today compared sa average ng past 13 days.

Kung 7 pesos ang EMA13 at 8 pesos ang high ay 1 yung Bull power.

Kung 7 pesos ang EMA13 at 7.5 ang low ay 0.5 ang Bear power.

You add them together para makuha ang Bull Bear Power.

1.5 ang Bull Bear Power.

Habang pa uptrend ang price ay mas tumataas ang Bull Bear Power.

You can say na mas higher ang high at mas higher ang low ay mas higher ang BBP.

Hindi mo na kailangan pa maghanap ng higher high at higher low kasi one look at an increasing BBP ay alam mo na uptrend na.