The Bears Power Oscillator MT4 indicator is an oscillator type trading indicator for the Metatrader 4 platform.
It oscillates below and above the zero level.
Above the zero level suggests the trend is bullish; on the contrary, trading below the zero level suggests the trend is bearish.
It’s recommended to use this indicator together with a trend following indicator, such as a longer period moving average.
For example the 100 or 200 period simple moving average would be a good choice.
The indicator is calculated as follows:
Bears = Low – EMA
Free Download
Download the “Bears.mq4” MT4 indicator
Indicator Chart (USD/JPY D1)
The USD/JPY daily chart below shows the Bears Power Oscillator forex indicator in action.
Basic Trading Signals
Buy: The indicator crosses the zero line (0.00 level) from below.
Sell: The indicator crosses the zero line (0.00 level) from above.
Bears Power Oscillator and Trend Bars MT4 Forex Day Trading Strategy
This MT4 day trading strategy combines momentum strength with price trend visualization using the Bears Power Oscillator MT4 Forex Indicator and the Trend Bars MT4 Forex Indicator.
The Bears Power Oscillator provides buy signals when it crosses above zero from below and sell signals when it crosses below zero from above.
The Trend Bars highlight market direction with blue bars for bullish trends and red bars for bearish trends.
This combination allows traders to enter trades aligned with momentum and the prevailing trend, making it suitable for day trading on M15 and M30 charts.
Buy Entry Rules
- Confirm that the Trend Bars are blue, indicating a bullish trend.
- Wait for the Bears Power Oscillator to cross above the zero line from below.
- Enter a buy trade at the close of the candle where the crossover occurs.
- Place stop 2-3 pips below the recent swing low or Trend Bars support level.
- Take profit at the next resistance level or when the oscillator crosses back below zero.
Sell Entry Rules
- Confirm that the Trend Bars are red, indicating a bearish trend.
- Wait for the Bears Power Oscillator to cross below the zero line from above.
- Enter a sell trade at the close of the candle where the crossover occurs.
- Place stop 2-3 pips above the recent swing high or Trend Bars resistance level.
- Take profit at the next support level or when the oscillator crosses back above zero.
Advantages
- Combines trend direction and momentum for well-aligned day trading entries.
- Trend Bars provide clear trend bias, simplifying decision-making in fast markets.
- The Bears Power Oscillator generates objective entry and exit points.
- Works effectively on M15 and M30 charts, suitable for active day trading.
- Helps avoid countertrend trades, reducing potential losses.
- Flexible across multiple currency pairs without requiring adjustments.
- Dynamic exits based on momentum shifts capture intraday trend moves.
- Reduces hesitation and overthinking with clearly defined rules.
- Supports multiple trade opportunities per day during active sessions.
- Easy for traders of all levels to implement consistently.
Drawbacks
- Requires constant monitoring to capture timely day trading setups.
- Trade opportunities may be limited during quiet market periods.
- Rapid price movements from news events can invalidate trades quickly.
- Day trading can be stressful due to the fast pace and multiple signals.
Example Case Study 1
On EURUSD M15, the Trend Bars were blue, showing a bullish trend.
The Bears Power Oscillator crossed above zero from below, signaling a buy.
The trade was entered at candle close with a stop 2-3 pips below the recent swing low.
Price continued upward, and the trade was closed at the next resistance level, resulting in a 35 pip profit.
Following the trend alongside momentum allowed the trader to capture the core intraday movement efficiently.
Example Case Study 2
On AUDJPY M30, the Trend Bars turned red, indicating a bearish trend.
The Bears Power Oscillator crossed below zero from above, signaling a sell.
A sell trade was entered at candle close with a stop 2-3 pips above the recent swing high.
Price moved downward steadily, and the trade was exited at the next support level, resulting in a 48 pip profit.
Combining trend and oscillator signals provided a high-probability day trading setup.
Strategy Tips
- Focus on trades that align with the Trend Bars color to increase success probability.
- Wait for the Bears Power Oscillator to confirm momentum before entering a trade.
- Use M15 charts for faster setups and M30 charts for more deliberate entries.
- Set stop losses 2-3 pips beyond recent swing points to protect capital while allowing room for normal price fluctuations.
- Consider scaling out partial positions at intermediate levels to lock in profits gradually.
- Keep track of which currency pairs generate the most reliable setups to focus trading efforts.
- Avoid trading during major news announcements to minimize the risk of sudden, volatile moves.
- Use alerts or notifications for oscillator crossovers to ensure timely trade entries.
- Maintain a trading journal to review performance, refine timing, and adjust risk management strategies over time.
Download Now
Download the “Bears.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (Bears Period) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Oscillator
