Bulls and Bears Power

[Nitin Bhatia]

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Bulls and Bears Power in price action strategy are very important. Recently, there was confusion among the members of this channel. After a bearish candle, the stock market gave a gap up opening and closed 8 points below the previous day close. The members considered this bearish candle as a neutral candle. However, during the day, the fell by 114 pts from the top and closed 89 pts lower.

Therefore, it is important to find who controlled the trading day. It is very clear that bears power, in this case, is 89 pts and bulls power is only 25 pts. The pre-opening session is controlled by the limited participants of the market. It is important to know whether the bulls were able to retain control after the market is opened or not. If they were not able to control and bears took over then we can say that the candles were strong bearish as the market closed below the previous day close.

Also, candlestick or price action does not tell about the intraday movement of the price. It is one of the biggest limitations of price action or candlestick patterns. Due to the time gap between the trading sessions, the market can open the gap up or gap down

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