Bulls Power MetaTrader 4 Indicator & Bulls Power Signals

Created by Alexander Elder

Bulls Power is used to estimate power of the Bulls (Buyers). Bulls Power estimates the balance of power between the bulls & bears.

This MT4 Indicator aims at identifying if a bullish trend will continue or if the price has reached a point where it may reverse.

Calculation

A Currency Price bar has 4 parameters: the Opening, Closing, High & Low of the price bar.

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

The highest price will signify and show the maximum power of the Bulls within a price period.

The lowest price will signify and show the maximum power of the Bears within a price period.

This MT4 Indicator uses the High of the price & a Moving Average (Exponential)

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

Therefore:

Bulls Power = High Price - Exponential Moving Average

Bulls Power

MetaTrader 4 Indicator & Generating Signals

Buy Trading Signal

A buy signal is generated when the Bulls Power MetaTrader 4 Indicator moves above Zero.

In an up trend, the HIGH is higher than EMA, so the Bulls Power is above zero and Histogram/MetaTrader 4 Indicator is located above zero line.

Exit Forex Signal

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

The Triple Screen method for this MetaTrader 4 Indicator suggests identifying the price 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 MetaTrader 4 Indicator but only in the direction of the long term trend in the higher time frame.