Bears Indicator

Bears Indicator

The Bears indicator for MT4 displays the activities of sellers in the market.

The Bears indicator for MetaTrader 4 is a trend oscillator developed by Alexander Elder to evaluate the sellers’ (bears’) power to move the price of a financial instrument in the market. It is essentially a trading tool designed to detect the increase or decrease in the activities of sellers in the market.

The indicator evaluates the bears’ power by taking into cognizance the difference between the value of the 13-period exponential moving average and the lowest price moved by a bar. Therfore, a rise in the bears’ power is depicted when the histogram bars of the indicator crossed below the zero line, while the bars above the zero line signal the decline in the bears’ power.

How to Trade with the Bears Indicator for MT4

The above image depicts the action of the Bears indicator on the EURUSD in the H1 timeframe. A thing to note about this indicator is that it doesn’t generate buy or sell signals. Thus, it is essentially a technical guide that tells you when to enter or exit the market based on the activities of the bears.

So, for instance, you may look for selling opportunities when the histogram bars move below the zero line, which indicates the dominance of bears in the market, Conversely, you may close a sell position in anticipation of a trend reversal when the indicator forms a divergence from the market price as depicted in the image above.

Conclusion
The Bears indicator for MT4 is recommended for both novice/intermediate and advanced forex traders in day-to-day trading activities. What’s more, the indicator is free to download.