Bulls Power Technical Analysis and Bulls Power Signals
Created by Alexander Elder
Bulls Power is utilized to assess the strength of the Bulls (Buyers). It gauges the power balance between bulls and bears.
This technical tool is designed to ascertain whether a positive trend is poised to persist or if the price has reached a juncture where a reversal might occur.
Calculation
A price bar consists of four components: the Opening, Closing, High, and Low prices.
Each Price bar either closes higher or lower than previous gold price bar.
The maximal gold valuation recorded accurately reflects the peak influence exerted by bullish traders during that specific gold price cycle.
The lowest gold price will indicate the maximum strength of the Bears during a specified gold price period.
This Indicator uses the High of the price & a MA (Exponential MA)
The MA represents the middle ground among sellers and customers for a certain gold charge length.
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
When the high drops below the EMA, gold starts to fall. The Bulls Power bars cross under zero.
The Triple Screen trading strategy for this technical indicator suggests identifying 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 time-frame). 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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