When opening a down trade, you should first take into account the Bulls Power signals. Bears Power in this case acts as an additional, confirming oscillator.
There are 2 main signals to open a down trade:
– Bulls Power is above zero and moving down. The EMA line is also decreasing, confirming the downtrend.
If the last column of the Bears Power histogram is lower than the previous one, it additionally confirms the signal.
If Bulls Power drops below zero, it is not recommended to open a trade. In this case, there is a possibility that the price will turn up, and the trade will be unprofitable.
– A bearish divergence has formed between the price chart and Bulls Power.