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Bulls Power XAUUSD Technical Analysis and Bulls Power XAUUSD 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 indicator aims at identifying if a bullish xauusd trend will continue or if the gold price has reached a point where it might reverse.


Calculation

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


Each XAUUSD Price bar either closes higher or lower than the previous gold price bar.


The highest gold price will indicate the maximum power of the Bulls within a xauusd price period.


The lowest gold price will indicate the maximum power of the Bears within a xauusd price period.



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


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


Therefore:


Bulls Power = High XAUUSD Price - Exponential Moving Average

Bulls Power XAUUSD Indicator

Bulls Power



XAUUSD Technical Analysis and Generating XAUUSD Signals


Buy XAUUSD Signal

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

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


Bulls Power Gold Indicator Buy Signal



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.

Bulls Power Gold Indicator Exit Signal Generated


The Triple Screen method for this indicator suggests identifying the gold price gold 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 xauusd trend in the higher time frame.

 

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