Friday, July 21, 2017

Bulls and Bears indicator

Bulls and Bears indicator

Bulls and Bears Indicator

An indicator showing who is dominant at the moment on the market: buyers (Bulls-bulls) or sellers (Bears-Bears).


About terms of the Bulls and the Bears first wrote K. Johnson in 1714. In the book «Country Lasses» he says about these categories of gamblers and especially their trade.

So bulls Forex - traders is playing in the rise of the market or at least count on the increase in the price of a particular financial instrument.

The origin of the name is inspired by the analogy - the bulls lifted the enemy on the horns, throwing it up - just trader bull "raise" the price for its aggressive shopping. Wild bear bore down on the enemy, or the victim, pressing the ground with their weight. Similarly, a trader bear tends to lower prices and increase supply. To do this, it opens a short position and sell, sell, while prices will not fall to the desired level.

In contrast to the stock exchange, foreign exchange operates on the exchange rates, acts as a financial instrument.

Therefore, the forex market bulls and bears are expected to rise or, respectively, the fall of the exchange rate, and to achieve the purpose they buy or sell the base currency against the quote.

on display

As mentioned earlier, this indicator shows who is dominant at the moment.

Color scheme:

  • Bulls - bar chart. Color - DodgerBlue. It reflects the dynamics of change in the propensity to buy at a given time.

  • Bears - bar chart. Color - Orange. It reflects the dynamics of change in the propensity for sale at any given time.

  • BLBR_MA - moving average. Color - White. Built according to Bulls and Bears. The main purpose - an additional landmark. The increase in this average indicates that at the moment the tendency to buy more than a penchant for sale. Reduction indicates that at this point in time the tendency to sell more than the propensity to buy.

  • BLBR_UP and BLBR_DW - These two lines form a channel within which the value varies BLBR_MA. If BLBR_MA leaves the channel or touches the channel boundaries (BLBR_UP or BLBR_DW), then at the bar must pay attention, because the High and Low prices of the bar can serve in the subsequent levels of resistance / support respectively. Or penetration of these levels will open the way for the continuation of the ascending / descending trend.

An indicator:

  • BLBRperiod - averaging period, data histograms Bulls (DodgerBlue) and Bears (Orange).

  • BLBRmethod - averaging method.

  • MA_BLBRperiod - averaging period moving average BLBR_MA (White), constructed according Bulls and Bears.

  • MA_BLBRmethod - method of averaging the moving average.

  • Channel - true - show the channel; false - do not show the channel.

It was said above about the role and BLBR_UP BLBR_DW together with BLBR_MA. Therefore, it is recommended to use one and the same averaging method, and averaging periods must differ from each other in three or more times. In this histogram averaging period should be longer averaging period moving average.

Bulls and Bears indicator

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