You will come across many animals while learning more about Olymp Trade. This time we have a bear, the Bears Power, to be precise. It is an indicator that is used to predict the direction in which the price goes as well as the reversal of the trend. Read this article to know how to use it on the Olymp Trade platform.
Key Takeaways🔑
| →Bears Power is an indicator used to predict price direction and potential trend reversals in the market. |
| →This tool is especially useful for identifying potential downtrends or ‘selling power’. |
| →Practice using the Bears Power indicator on a demo account before applying it to live trading. |
Contents
Setting up the Bears power at Olymp Trade
Click on the indicators feature icon on the Olymp Trade interface and the window with all the indicators will pop up. Scroll down to the oscillators and chose the Bears power.
The default period is 13 and the color is purple. You can change those parameters, as well as the thickness of the line.
In the middle, there is a horizontal line of 0 value. The important places are those where the purple line intersects the 0 lines.
Pros and Cons 👍👎
Pros:
- Bears Power can effectively predict potential downtrends. 📉
- This indicator can be particularly useful for long-term trades. ⏳
- Its parameters can be customized according to the user’s preferences. 🎛️
Cons:
- The Bears Power indicator might not be as effective in predicting uptrends. 📈
- It requires careful observation and quick response to market changes. 👀
- Like any indicator, it may sometimes give false signals. 🚫
| Bears Power Indicator Feature | Description |
|---|---|
| Predictive Capacity | Can effectively anticipate potential downtrends in the market. |
| Usability | Primarily used in long-term trades; customizable to user’s preference. |
| Limitations | Less effective for uptrends; requires constant monitoring. |
Using the Bears power on the Olymp Trade platform
The Bears power is used to predict the trend reversal, this is true. But what I did not tell you before, is that it is mainly used to determine the selling power. In other words, the upcoming downtrend is simple to catch with the Bear’s power.
This indicator works best for the trades lasting a long time. So when the purple line crosses the 0 lines and continues downwards, you can open a sell position for a longer time.
I recommend trying this new indicator on the practice account first. It is free of charge and you can trade there as long as you wish. Bear in mind though, that you can only make real money on the live account. So once you have become confident with the Bears power indicator, switch to the real account.
Wish you enjoyable trading!
Q&A Section 💡
- Q: What is the main use of the Bears Power indicator?
- A: Bears Power is primarily used to predict potential downtrends or ‘selling power’ in the market.
- Q: Can the Bears Power indicator predict uptrends?
- A: While it may offer some insights, the Bears Power indicator is less effective for predicting uptrends.
- Q: How should I use the Bears Power indicator effectively?
- A: For best results, try using this indicator for long-term trades, and always practice on a demo account before applying it to live trading.
- Q: Can the Bears Power indicator give false signals?
- A: Like any other technical indicator, the Bears Power indicator may occasionally give false signals, so it should always be used in conjunction with other analysis tools.