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
Inputs
Length
The length for the EMA's smoothing parameter calculation. Its default value is 13.
Length
The length for the EMA's smoothing parameter calculation. Its default value is 13.
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FAQs
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.
How do you read a bull bear power indicator? ›
Buy signal is generated when the Bulls Power oscillator moves above zero. If the Bull Power indicator is below zero (High < EMA), it means sellers were able to drive price below the EMA. This is negative. If the Bears Power indicator (Low – EMA) is below zero, it means sellers were able to drive price below the EMA.
What is the bull bear signal indicator? ›
Traders can use the Bears and Bulls Power Indicator to confirm the strength of an existing trend. If the Bears Power is increasing while the price is declining, it indicates a strong bearish trend. Conversely, if the Bulls Power is rising while the price increases, it suggests a robust bullish trend.
What is the bull bear index indicator? ›
The bull/bear index reflects the aggregate sentiments of financial advisors and planners who deal daily with the market. It reflects how well-informed professionals feel about the stock market and how they likely advise their clients to invest based on those feelings.
What is bear power bull power? ›
Bull power rises when bulls are stronger and falls when they are weaker, even becoming negative when they are utterly weak. Bear power, by contrast, is the capacity of bears to push prices below the moving average.
How to use bulls power and bears power indicator? ›
Traders can use this indicator to identify potential entry and exit points. For example, a move above zero in the Bull power histogram suggests a buying opportunity, while a dip below zero in the Bear power histogram may indicate a selling opportunity.
What is the best bullish bearish indicator? ›
During a bullish market, when the MACD line crosses above the signal line, it is a bullish signal, indicating that the uptrend is gaining momentum. This can be an entry point for long positions. On the other hand, when the MACD line crosses below the signal line, it is a bearish signal.
How to trade with bull Power Indicator? ›
Compare the bulls power indicator and bearish power indicator to the 13-day EMA to determine if the bulls are more powerful or the bears, and place a market order accordingly. If the bulls are more powerful, place a long order and if the bears are more powerful, place a short order.
What is the bear vs bull signal? ›
Key Takeaways
A bull market is when stock prices are on the rise and economically sound, while a bear market is when prices are in decline. The origin of these expressions is unclear, but one reason could be that bulls attack by bringing their horns upward, while bears attack by swiping their paws downward.
How do you tell if a stock is bullish or bearish? ›
It can be easy to confuse your financial market animals — both bulls and bears are large, strong and known for territorial behavior. But in a bull market, stock market values rise at least 20% from a recent low, whereas in a bear market, average stock values drop by at least 20% from a recent peak.
To calculate the Bull Bear Ratio, we divide the number of bullish investors by the number of bearish investors: 70/30 = 2.33. This means that for every bearish investor, there are approximately 2.33 bullish investors.
What is the bull bear ratio for investors intelligence? ›
Investors Intelligence considers this normal range of being 45% bulls, 35% bears, and 20% correction.
Who is more powerful bull or bear? ›
Historically, certain people have staged fights between grizzly bears and bulls. The bears almost always won due to better dexterity, and the fact that the bull isn't able to hit vital organs at the height of its head during a charge.
How do you read a force indicator? ›
First, the Force Index is positive when the current close is above the prior close. The Force Index is negative when the current close is below the prior close. Second, the extent of the move determines the volume multiplier. Bigger moves warrant larger multipliers that influence the Force Index accordingly.
How do you read a bull Catalogue? ›
Looking at the Progeny of Bull in Catalogue
- Birth Weight. The birthweight EBV is the best predictor of the birthweight of a bull's progeny. ...
- Milk. BREEDPLAN partitions weaning weight into the 'milk' and 'growth' components. ...
- 400 Day and 600 Day Weights. ...
- Scrotal size (SS). ...
- Carcase Traits.
Bull aggression
Pay attention to the bull's body language—they will turn broadside to present their size and power—and watch for signs of aggression such as pawing at the ground. Never turn your back on a bull, even if you think it's not paying attention to you. Bulls can and will attack unprovoked.
