Bulls Power Technical Analysis & 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 MT5 indicator aims at identifying if a bullish forex trend will continue or if the forex price has reached a point where it may reverse.
Calculation
A Currency Forex Price bar has 4 parameters: the Opening, Closing, High & Low of the forex price bar.
Each Forex Price bar either closes higher or lower than the previous forex price bar.
The highest forex price will signify and show the maximum power of the Bulls within a forex price period.
The lowest forex price will signify and show the maximum power of the Bears within a forex price period.
This MT5 Indicator uses the High of the forex price & a Moving Average (Exponential)
The moving Average represents the middle ground between sellers and buyers for a certain forex price period.
Therefore:
Bulls Power = High Forex Price - Exponential Moving Average
Bulls Power
Forex Technical Analysis & Generating FX Signals
Buy Forex Signal
A buy signal is generated when the Bulls Power oscillator MT5 indicator MT5 indicator moves above Zero.
In an up trend, the HIGH is higher than EMA, so the Bulls Power is above zero and Histogram/Oscillator MT5 Indicator is located above zero line.
Exit Trading Signal
If the HIGH falls under EMA then it means that forex price are starting to fall, the Bulls Power histogram fall below the zero line.
The Triple Screen method for this MT5 indicator suggests identifying the forex 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 indicator but only in the direction of the long term forex trend in the higher time frame.
