Bulls Power Metals Analysis & Bulls Power 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 metals indicator aims at identifying if a bullish metals trend will continue or if the metals price has reached a point where it may reverse.

Calculation

A Metals Price bar has 4 parameters: the Opening, Closing, High & Low of the metals price bar.

Each Metals Price bar either closes higher or lower than the previous metals price bar.

The highest metals price will show the maximum power of the Bulls within a metals price period.

The lowest metals price will show the maximum power of the Bears within a metals price period.

This Technical Indicator uses the High of the metals price & a Moving Average (Exponential)

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

Therefore:

Bulls Power = High Metals Price - Exponential Moving Average

Bulls Power

Metal Analysis & Generating Trading Signals

Buy Trading Signal

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

In an up metals 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 Trading Signal

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

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