Bulls Power Bitcoin Analysis & Bulls Power Trade Signals
Developed by Alexander Elder
Bulls Power is used to measure the power of Bulls (Buyers). Bulls Power ==22==estimatesmeasures the balance of power between the bulls & bears.
This btcusd indicator aims at identifying if a bullish bitcoin trend will continue or if the bitcoin price has reached a point where it may reverse.
Calculation
A Bitcoin Price bar has 4 parameters: the Opening, Closing, High & Low of the btcusd crypto price bar.
Each Bitcoin Price bar either closes higher or lower than previous bitcoin price bar.
The highest btcusd price will show the maximum power of the Bulls within a btcusd cryptocurrency price period.
The lowest btcusd price will indicate the maximum power of Bears within a btcusd crypto price period.
This Indicator uses the High of the bitcoin price & a MA (Exponential Moving Average)
The moving average represents the middle ground between sellers and buyers for a certain bitcoin price period.
Therefore:
Bulls Power = High Bitcoin Price - EMA
Bulls Power
Bitcoin Analysis and How to Generate Signals
Buy Signal
A buy cryptocurrency signal is derived & generated when the Bulls Power oscillator goes above Zero.
In an up btcusd trend, the HIGH is higher than Exponential MA Moving Average, so the Bulls Power is above zero and Histogram is located above the zero-line.
Exit Trade Signal
If the HIGH falls under Exponential Moving Average then it means that bitcoin price are starting to fall, the Bulls Power histogram falls below the zero-line.
The Triple Screen method for this trading indicator suggests identifying the bitcoin price trend on a higher chart interval (like daily time frame) ==22==and applying the bulls powers on a lower chart interval (like hourly chart time-frame). Signals are traded and transacted according to the indicator but only in direction of the long term bitcoin trend in the higher time frame.
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