In this currency venture, there are 2 kinds of market situations which a trader always encounters. A bearish market situation and a bullish scenario! The former is when there is a speculation that the price of the currency pair will rise in due time. And bearish market situation is when the currency value has prospects of declining. For a trader who has some bit of experience will be able to determine such up-approaching scenarios by reading their trading charts. But for a newbie, this task is a bit daunting. This is why they make use of bears indicator Forex.
A good option:
On looking up, you will find a number of technical analysis tools for determining bearish as well as bullish situations. Though finding out an appropriate one can be daunting, there is a simple way to go about things. At times as such, you only trust the experts, and this is one option they suggest.
Bears’ Power Indicator- A reliable bears indicator Forex!
This indicator possesses some very good reviews in Forex forums as well as review sites. It helps find out the strength of a bearish market.
Your currency pair is EUR/USD, and when you trade with this indicator, if you find it lurking below the naught, this indicates that the bear is strong. And if the indicator is present over the naught, it means the bearish market is weak.
In viewpoints of users, there are 2 things which you keep in mind.
• If the currency price reaches its lowest point in the entire trading day, it means that the selling pressure is at its strongest.
• Price’s moving average simply denotes a situation when the buyers and sellers get into a mutual agreement.
If you want to Buy:
Moving Average is itself a very good market momentum indicator. And using this with Bears Power Indicator means more profound analysis. If you are looking to buy, then you need a check for these conditions.
• When the trend indicator is upwards
• And when the Bears indicator is negative and consistently on the rise
Furthermore, if your trading chart showcases a bullish divergence, then the buy signal is even stronger.
This is one good indicator which you can use not just for identifying bearish market situation but also for profiting in it.
Other than that there are other bull bear Forex indicator options too which traders can use.
ADX is one such good option:
Average Directional Index is a great option when it comes to finding out the existing market trend. For quantifying the strength of a trend, traders can easily distinguish between a trending and non-trending situation. To work with it, you will have to concentrate on 2 important criterions.
On your trade chart, if you come across the ADX line present or over the 25 mark, that is a sign that the market strength is amply strong for applying market trend trading strategies.
Contrarily, if the trading chart showcases this bull bears Forex indicator to be below the 25 mark, then you should just avoid trending strategies.
Learn with tutorials and practice with the demo:
To understand these indicators better (simply speaking the indications for bearish and bullish scenarios) just go through its training manuals. And after being thorough with them, test them out using demo trading accounts.
At the start, there could be some complications in understanding them better. But the more you work with these bulls and bears indicator Forex, you will get a clearer idea of using them properly. So practice with them and increase your chances of winning, all the more!
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.