Ray Bear Power Study

By Samantha Baltodano

TL;DR:

The Ray Bear Power study plots only the Bear Power component of the Elder Ray indicator.

What Is Ray Bear Power?

The Ray Bear Power study plots only the Bear Power component of the Elder Ray indicator.

Bear Power subtracts the Exponential Moving Average (EMA) from the corresponding low price of that trading day. 

Bear power represents the capacity of bears to push prices below the Moving Average. The distance between the low and the EMA, which widens when the bears are weaker and narrows when they are stronger, gives this figure. Bear power is typically negative, so if it turns positive, the bulls have taken complete control.

Bear Power values are plotted as histograms under the bar chart of your chosen security.

For more background on this indicator and to learn how to interpret it, check out the Elder Ray indicator.

Summary

• Bear Power is calculated by subtracting the Exponential Moving Average (EMA) from the corresponding low price of that trading day.
• Bear power represents the capacity of bears to push prices below the Moving Average.
• Bear power is typically negative, so if it turns positive, the bulls have taken complete control.

Ray Bear Power is just one of many studies that Archaide automates. For a full list of strategies and studies available click here.

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