TRADING MANUAL - Bulls Power Indicator, How to Use It and Free to Download
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 indicator aims at identifying if a bullish trend will continue or if the price has reached a point where it might reverse.
Calculation
A Currency Price bar has 4 parameters: the Opening, Closing, High and Low of the price bar.
Each Price bar either closes higher or lower than the previous price bar.
The highest price will indicate the maximum power of the Bulls within a price period.
The lowest price will indicate the maximum power of the Bears within a price period.
This Indicator uses the High of the price and 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
Technical Analysis of Bulls Power Technical Indicator
Buy Signal
A buy signal is generated when the Bulls Power oscillator moves above Zero.
In an up trend, the HIGH is higher than EMA, so the Bulls Power is
above zero and Histogram/Oscillator is located above zero line.
Exit 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 indicator suggests identifying the
price trend on a higher chart interval (like Daily charts) and applying
the bulls power technical indicator on a lower chart interval (like
Hourly charts). Signals are traded according to the indicator but only
in the direction of the Forex price trend in the higher chart
time-frame.
Free to Download
- Bulls Power - indicator for MetaTrader 5
- Bulls Bears Power - indicator for MetaTrader 5
- Total Power Indicator - indicator for MetaTrader 5
- sH Bulls n Bears - indicator for MetaTrader 4
