Bulls Power Indices Technical Analysis & Bulls Power Trading Signals
Developed by Alexander Elder
The Bulls Power indicator gauges buyer strength. It checks the balance between bulls and bears.
This indicator aims at identifying if a bullish trend will continue or if price has got to a point where it may reverse.
Calculation
Each price bar includes four key parts: open, close, high, and low prices.
Each Price bar either closes higher or lower than previous trading price bar.
The highest price will show the maximum power of the Bulls within a price period.
The lowest price will show the maximum power of the Bears within a price period.
This Indicator uses the High of the price & a MA (Exponential MA)
The moving average (MA) serves as the midpoint between sellers and buyers over a specific price period.
Therefore:
Bulls Power = High Price - Exponential Moving Average
Bulls Power
Technical Analysis and How to Generate Signals
Buy Signal
A buy trade signal is generated when the Bulls Power oscillator indicator moves above Zero.
Within an uptrend, the HIGH price remains above the Exponential Moving Average, simultaneously the Bulls Power reading is positive (above zero), and the Oscillator is also situated above the zero line.
Exit Signal
If the HIGH goes under EMA, that means prices are starting to go down, and the Bulls Power chart goes below the zero line.
The Triple Screen method/technique for this technical technical indicator suggests identifying price trend on a higher chart time frame interval (like daily time-frame) and applying the bulls powers on a lower chart interval (like the hourly chart time frame). Signals are traded and transacted according to the indicator but only in direction of the long term trend in the higher time frame.
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