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