There are two essential conditions for buying:
1. The trend is up (identified by EMA or a weekly trend-following indicator).
2. Bear Power is negative but rising.
The third and fourth conditions are desirable but not essential:
3. The latest peak in Bull Power is higher than the previous peak.
4. Bear Power is rising from a bullish divergence.
Do not buy when Bear Power is positive. This occurs in runaway uptrend, when the entire bar rises above the EMA. If you buy when bears are being held up in the air, you are betting on the greater fool theory - paying a high price and hoping to meet a greater fool down the road willing tobuy from you at an even higher price.
