Bulls Power Technical Analysis and Bulls Power Signals

Developed by Alexander Elder

Bulls Power is used to estimate the 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 trend will continue or if the price has reached a point where it may reverse.

Calculation

A Price bar has four parameters: the Opening, Closing, High & Low of the price bar.

Each 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 gold price period.

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

This Indicator uses the High of the price & a MA (Exponential MA)

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

Therefore:

Bulls Power = High Price - Exponential Moving Average

Bulls Power

XAUUSD Technical Analysis & How to Generate Signals

Buy Signal

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

In an up trend, the HIGH is higher than Exponential Moving Average, so the Bulls Power is above zero and Histogram Oscillator is located above the zero-line.

Exit Trade Signal

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

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