Bulls Power Expert Advisor Setup - Setting Up Bulls Power Expert Advisor
Bulls Power Expert Advisor Setup - Setting Up Bulls Power Expert Advisor - A trader can come up with an Bulls Power Expert Advisor based on the awesome indicator explained below.
Bulls Power Expert Advisor rules can be combined with other indicators to come up with other EA Bots that trade using rules based on two or more indicators combined to form a system.
Bulls Power Indicator Analysis and Bulls Power Indicator Signals
Created by Alexander Elder
Bulls Power is used to estimate 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 trading price has reached a point where it might reverse.
Calculation
A Currency Price bar has four parameters: the Opening, Closing, High & Low of the price bar.
Every Price bar either closes higher or closes lower than previous bar.
The highest price will mark & show the max power of the Bulls within a price period.
The lowest price will mark and show the max power of the Bears within a price period.
This Indicator uses the High of the price and a Moving Average (Exponential MA)
The moving Average illustrates the middle ground between sellers and buyers for a certain price period.
Therefore:
Bulls Power = High Price - EMA
Bulls Power - Bulls Power Expert Advisor Setup
Technical Analysis & Generating Signals
Buy Signal
A buy signal is generated when Bulls Power oscillator moves above Zero.
In an upwards market trend, the HIGH is higher than EMA, so the Bulls Power is above zero & Histogram is located above zeroline.
Bulls Power Expert Advisor Setup
Exit Trading Signal
If the HIGH falls under Exponential Moving Average then it means that the prices are beginning to drop, the Bulls Power histogram drops below zeroline.
Bulls Power Expert Advisor Setup
The Triple Screen technique for this technical indicator suggests spotting the price trend on a higher chart time-frame interval (like daily time frame) & applying the bulls power on a lower chart time-frame interval (like hourly time frame). Signals are traded according to the indicator but only in direction of the long-term trend on the higher chart time frame.
