Now it is possible to have an edge in trading! Follow our market edge, beta-version, and understand the real hidden forces that move prices.
BULL POWER + BEAR POWER + AVAILABLE RESERVE POWER = 100%
1: AVAILABLE RESERVE POWER = : The amount of buying/selling power that market participants can bring into the market. That money is in the account of traders. A high percentage (i.e. 40%) means that a lot more power can be brought to bear in the market. Exactly how that power will be distributed between bears and bulls depends on the current BEAR/BULL POWER.
2: BEAR/BULL POWER = : If BEAR POWER is high (i.e. >50%) then it means that BULLS have not had a lot of influence in the market and one should expect their pressure in the near future(The closer BEAR/BULL POWER is to 80% and above the closer the market is to consolidation and direction change because in this case there must be very little AVAILABLE RESERVE POWER left). In this case, it is wise to check the value of the AVAILABLE RESERVE POWER. If the AVAILABLE RESERVE POWER is about 40%, then it is possible that more BEAR POWER can enter the market. If AVAILABLE RESERVE POWER is about 20% then one should expect the market to stall/consolidate in preparation for a trend change.
3: This works almost surely. You can verify it by testing the numbers yourself.
WATCH OUT for our MARKET DEPTH table in the future.