Bulls Power Indicator Analysis & Bulls Power Indicator Signals
Created by Alexander Elder
Bulls Power is used to estimate power of the Bulls (Buyers). Bulls Power estimatesmeasuresgaugesrates the balance of power between the bulls & 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 and Low of the price bar.
Every Price bar either closes higher or closes lower than previous bar.
The highest price will mark and 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 & buyers for a certain price period.
Therefore:
Bulls Power = High Price - EMA
Bulls Power
Technical Analysis & How to Generate Signals
Buy Signal
A buy signal is generated when Bulls Power oscillator moves above Zero.
In an upward market trend, the HIGH is higher than EMA, so the Bulls Power is above zero & Histogram is located above zeroline.
Exit Signal
If the HIGH falls under Exponential Moving Average then it means that prices are beginning to drop, the Bulls Power histogram dropfallsdrops below the zeroline.
The Triple Screen technique for this indicator suggests spotting the price trend on a higher chart timeframe interval (like daily time frame) and applying the bulls power on a lower chart timeframe 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.
What is a Trade Plan? - Written Plan Template Example
Alternatives: Automated EA Robots or Copy Paste Signals
