Bull Bear Power (2024)

FAQs

What does bull bear power mean? ›

The Bull and Bear Power oscillator was developed by Alexander Elder. It determines the strength of buyers (bulls) vs. sellers (bears) as it measures the difference between the highest price and a 13-period EMA, plotted as a histogram.

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.

Mathematically, bull power is derived by subtracting an exponential moving average (perhaps a 13-day EMA) of closing prices from a high price of any given security. Bear power subtracts the EMA from the corresponding low price of that trading day.

Interpretation of the Elder Ray Index

Bull Power reflects the strength of the bulls, while Bear Power measures the strength of the bears. When Bull Power is high, it indicates intense buying pressure; when Bear Power is low, it indicates intense selling pressure.

The use of “bull” and “bear” to label financial markets has several different possible origins. However, the terms could come from how these animals attack: a bull thrusts its horns upward, symbolizing rising prices, while a bear swipes its paws downward, representing falling prices.

The terms “bear” and “bull” are thought to derive from how each animal behaves. Bulls charge, so the nickname represents a surging stock market. In contrast, bears hibernate, so bears represent a market that's retreating.

Note that positive values in the Bulls Power indicator indicate bullish strength, while negative values in the Bears Power indicator indicate bearish strength. Key point: Bulls and Bears Power indicators help us visualize the strength of buyers and sellers respectively.

While bull markets are fueled by optimism, bear markets — which occur when stock prices fall 20% or more for a sustained period of time — are just the opposite. Bull markets are generally powered by economic strength, whereas bear markets often occur in periods of economic slowdown and higher unemployment.

Investors tend to feel more confident during bullish market rallies. Declining earnings and consumer spending lead to bearish markets. Investors start to feel less confident about investments and may sell off their positions.

The Elder-Ray index is called the Bull Bear Power indicator. It reflects the behavior of buyers and sellers in the market during a certain period of time. If the indicator hovers near the zero line, there is balance in the market – neither party prevails, demand is balanced with supply, and the price does not change.

What is the bull bear level? ›

A bullish market contains rising prices and bearish market sentiment contains falling prices. The Bull/bear index shows the overall sentiments of financial planners and advisors who deal with the market every day. It shows what they feel about the stock market and what they would likely advise their clients.

A bullish divergence occurs when the price forms lower lows while the Bulls Power forms higher lows, indicating weakening selling pressure. Similarly, a bearish divergence occurs when the price forms higher highs while the Bears Power forms lower highs, suggesting diminishing buying pressure.

Powers and Abilities: Superhuman Physical Characteristics, Enhanced Senses, Climbing, Natural Weaponry. Durability: Wall Level (Can survive encounters with giant Asian animals, and attacks from tigers. Can withstand blows from a machete.

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.

In addition to the Care Bear Stare, the Care Bears also can use their tummy symbols to summon other assistance, such as heart-shaped balloons, cloud cars, rainbow bridges, and sending out a distress signal.

In the jargon of stock-market traders, a bull is someone who buys securities or commodities in the expectation of a price rise, or someone whose actions make such a price rise happen. A bear is the opposite—someone who sells securities or commodities in expectation of a price decline.

In broad terms, rising prices indicate bullish market sentiment, while falling prices indicate bearish market sentiment. The bull/bear index reflects the aggregate sentiments of financial advisors and planners who deal daily with the market.