Trade Forex Trading

Learn Stock Indices Trading for Beginners Guide

Bulls Power Stock Indices Technical Analysis and Bulls Power Stock Indices Trading Signals

Developed by Alexander Elder


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


This indices technical indicator aims at identifying if a bullish stock indices trend will continue or if the stock index price has reached a point where it might reverse.


Calculation

A Indices Price bar has 4 parameters: the Opening, Closing, High and Low of the stock index price bar.


Each Indices Price bar either closes higher or lower than the previous stock index price bar.


The highest stock index price will indicate the maximum power of the Bulls within a stock indices price period.


The lowest stock index price will indicate the maximum power of the Bears within a stock indices price period.



This Indicator uses the High of the stock index price and a Moving Average (Exponential)


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


Therefore:


Bulls Power = High Indices Price - Exponential Moving Average

Bulls Power Indices Trading Indicator - Bulls Power Indices Technical Indicator Analysis in Indices Trading - Bulls Power Indices Technical Indicator Technical Analysis

Bulls Power



Stock Indices Technical Analysis and Generating Stock Indices Trading Signals


Buy Stock Indices Trading Signal

A buy stock indices signal is generated when the Bulls Power oscillator moves above Zero.

In an up stock index trend, the HIGH is higher than EMA, so the Bulls Power is above zero and Histogram/Oscillator is located above zero line.


Bulls Power Stock Index Trading Indicator Buy Signal - Bulls Power Indices Technical Indicator Analysis in Indices Trading - Bulls Power Indices Technical Indicator Technical Analysis



Exit Signal

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

Bulls Power Stock Index Technical Indicator Exit Signal Generated - Bulls Power Indices Trading Indicator Analysis in Indices Trading - Bulls Power Indices Trading Indicator Technical Analysis


The Triple Screen method for this indicator suggests identifying the stock index price stock index 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 stock indices trend in the higher time frame.


 

Stock Index Symbols

Dow Jones 30, EUROSTOXX, DAX 30, FTSE 100, Nikkei 225, S&PASX 200, S&P 500, Nasdaq, CAC 40, SMI 20, FTSE MIB, Hang Seng 50, IBEX 35, AEX 25, US 500, SP 500, DJ 30, DJI 30, GDAXI30, UKX 100, SX50, SX5E, HSI 50, AS51, NKY 225, UsTec 100, WallStreet 30