Bulls Power CFD Technical Analysis and Bulls Power CFD Signals

Developed by Alexander Elder

Bulls Power is used to estimate power of the Bulls (Buyers). Bulls Power estimates the balance of power between the bulls and bears.

This cfds technical indicator aims at identifying if a bullish cfd trend will continue or if the cfd price has reached a point where it may reverse.

Calculation

A CFD Price bar has 4 parameters: the Opening, Closing, High and Low of the cfd price bar.

Each CFD Price bar either closes higher or lower than the previous cfd price bar.

The highest cfd price will show the maximum power of the Bulls within a cfd price period.

The lowest cfd price will show the maximum power of the Bears within a cfd price period.

This Indicator uses the High of the cfd price and a Moving Average (Exponential)

The moving Average represents the middle ground between sellers and buyers for a certain cfd price period.

Therefore:

Bulls Power = High CFD Price - Exponential Moving Average

Bulls Power

CFD Technical Analysis and Generating CFDs Signals

Buy CFD Signal

A buy trading signal is generated when the Bulls Power oscillator moves above Zero.

In an up cfds trend, the HIGH is higher than EMA, so the Bulls Power is above zero and Histogram/Oscillator is located above zero line.

Exit Trading Signal

If the HIGH falls under EMA then it means that cfd price are starting to fall, the Bulls Power histogram fall below the zero line.

The Triple Screen technique for this indicator suggests identifying the cfd price trend on a higher chart interval (like daily time frame) and applying the bulls power on a lower chart interval (like hourly time frame). Signals are traded according to the indicator but only in the direction of the long term cfd trend in the higher time frame.