Advanced Bull-Bear Power Indicator

Advanced Bull–Bear Power Indicator

The Advanced Bull–Bear Power Indicator is a momentum and market strength tool that quantifies the balance of power between buyers (bulls) and sellers (bears) over a selected lookback period. Rather than focusing only on price direction, it measures how much effort each side applies to move the price, combining both candle magnitude and candle frequency into a normalized strength metric.

How It Works

For every candle, the indicator calculates the absolute percentage change between the open and close. This represents the true price effort of that candle, independent of direction.

Each candle is then classified:
- Bullish candle: close > open
- Bearish candle: close ≤ open

Bullish candles contribute their strength only to bulls, while bearish candles contribute only to bears.

Over the selected period, the indicator computes:
- Average bullish candle strength
- Average bearish candle strength
- Percentage of bullish candles
- Percentage of bearish candles

Using the average strength values, a Power Ratio is calculated:

Power Ratio = Bull Avg / (Bull Avg + Bear Avg) × 100

This produces a clean 0–100 scale:
- Above 50 → Bullish dominance
- Below 50 → Bearish dominance

Visual Interpretation

The main line represents the Bull–Bear Power Ratio. Color gradients reflect dominance, where green tones indicate bullish control and red tones indicate bearish control.

Key reference levels:
- 50 → Neutral balance
- 60 → Strong bullish dominance
- 40 → Strong bearish dominance

Background highlights appear in extreme conditions:
- Above 70 → Extreme bull pressure
- Below 30 → Extreme bear pressure

Statistics Table

An optional statistics table displays:
- Average bullish strength
- Average bearish strength
- Bullish and bearish candle ratios
- Current power ratio
- Market state classification (Strong Bull, Weak Bull, Weak Bear, Strong Bear)

This allows quick assessment of whether dominance comes from consistent pressure or isolated strong moves.

Alerts

Alerts are triggered when:
- Power crosses above 60 → Strong bullish momentum
- Power crosses below 40 → Strong bearish momentum
- Power crosses 50 → Market balance shift

Practical Applications

This indicator can be used for trend strength confirmation, detecting early dominance shifts before breakouts, filtering trades in sideways or low-quality markets, and comparing momentum quality across assets or timeframes.

Key Insight

This indicator does not simply ask “Is price going up or down?”
It answers a more important question:

Which side is truly exerting more force on the market right now?

Disclaimer

This indicator should not be used as a standalone decision-making tool. It is designed to complement other forms of technical, fundamental, or contextual analysis. Always confirm signals with additional indicators, market structure, and risk management techniques. The user is solely responsible for any trading decisions made using this indicator.