Many people hear "Bull and Bear Indicator" and think it's some kind of complicated mysterious formula.


Actually, BBI is very simple:
It’s essentially an "average of moving averages."
The formula is:
BBI = (MA3 + MA6 + MA12 + MA24) / 4
What does it mean?
It’s just adding up the 3-day, 6-day, 12-day, and 24-day moving averages and then taking the average.
The benefit of doing this is:
It combines short, medium, and long-term trends,
making it smoother than a single moving average and more suitable for judging the overall market strength.
The most common uses of BBI fall into 3 categories:
① Determining Bull and Bear direction
• Price/coin price above BBI → Bullish strength increases
• Falling below BBI → Bearish strength increases
② Looking for buy/sell signals
• Breaking above BBI usually indicates a strengthening trend
• Falling below BBI usually indicates a weakening trend
③ Acting as support and resistance lines
• During an uptrend, BBI is often used as support
• During a downtrend, BBI is often used as resistance
Why do many people like BBI?
Because it’s more stable than a single MA.
It doesn’t give you a lot of noise signals just because of short-term price fluctuations.
But it also has obvious drawbacks:
It’s still a lagging indicator.
The trend has already started, and it only confirms it slowly.
So if you rely solely on BBI for decision-making,
it’s easy to encounter the problem of "seeing the trend correctly but entering and exiting imprecisely."
A better approach is:
Use BBI as a trend filter, not the only signal source.
For example:
- BBI determines the overall direction
- Volume confirms strength or weakness
- Key support and resistance levels decide specific buy/sell points
This approach is more practical.
If you’re interested, I can also help you rewrite
“Practical ways to use BBI”
into a viral Twitter post.
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