Bulls Power Indicator Analysis and Bulls Power Indicator Signals
Developed by Alexander Elder
Bulls Power is used to measure power of the Bulls (Buyers). Bulls Power estimatesmeasuresgaugesrates the balance of power between the bulls & bears.
This MT5 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 the 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 MT5 Indicator uses the High of the price & a Moving Average (Exponential Moving Average)
The moving Average represents the middle ground between sellers and buyers for a certain price period.
Therefore:
Bulls Power = High Price - Exponential MA
Bulls Power
Technical Analysis and Generating Signals
Buy Signal
A buy signal is generated when the Bulls Power oscillator MT5 indicator MT5 indicator moves above Zero.
In an upward trend, the HIGH is higher than EMA, so the Bulls Power is above zero and Histogram/Oscillator MT5 Indicator is located above zeroline.
Exit Trade Signal
If the HIGH falls under EMA then it means that price are starting to fall, the Bulls Power histogram fallfallsdrops below zeroline.
The Triple Screen method for this MT5 indicator suggests identifying 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.
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Alternatives: Automated EA Trading Robots or Copy Paste Signals
