Bull power and bear power by Dr. Alexander Elder show where today’s high and low lie relative to the a 13-day EMA (see Exponential Moving Average) of the closing prices.
Bull power = High - EMA of close Bear power = Low - EMA of close
Bull power is drawn in green and the bear power in red. The 13-day period is an option (see View Style). A 13-day EMA can be selected in the top window to show the basis for the calculation. The indicator lines are like “detrended” variations around that average.
Elder takes the 13-day EMA to be a consensus of value, and the amount bulls can push the daily highs above that is their power, and conversely the amount the bears can push daily lows below it is theirs (sending the bear power line negative).
Copyright 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2014, 2015, 2016, 2017 Kevin Ryde
Chart is free software; you can redistribute it and/or modify it under the terms of the GNU General Public License as published by the Free Software Foundation; either version 3, or (at your option) any later version.