Bulls Power Gold Trading Analysis and Bulls Power Gold 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 gold indicator aims at identifying if a bullish gold trend will continue or if the xauusd price has reached a point where it might reverse.

Calculation

A Gold Price bar has 4 parameters: the Opening, Closing, High and Low of the xauusd price bar.

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

The highest xauusd price will indicate the maximum power of the Bulls within a gold price period.

The lowest xauusd price will indicate the maximum power of the Bears within a gold price period.

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

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

Therefore:

Bulls Power = High Gold Price - Exponential Moving Average

Bulls Power

XAUUSD Trading Analysis and Generating XAUUSD Trading Signals

Buy XAUUSD Signal

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

In an up gold trend, the HIGH is higher than Exponential Moving Average, so the Bulls Power is above zero and Histogram/Oscillator is located above zero line.

Exit Signal

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

The Triple Screen method for this indicator suggests identifying the xauusd price xauusd 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 gold trend in the higher time frame.