Bulls Power Technical Analysis & Bulls Power Signals

Created by Alexander Elder

Bulls Power is used to estimate power of the Bulls (Buyers). Bulls Power measures 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 CFD Price bar has four parameters: the Opening, Closing, High and Low of the price bar.

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

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

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

This Indicator uses the High of the price and a MA (Exponential MA)

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

Therefore:

Bulls Power = High Price - EMA

Bulls Power

CFDs Analysis & How to Generate Signals

Buy Signal

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

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

Exit Trading Signal

If the HIGH falls under EMA then it means that cfds price are starting to fall, the Bulls Power histogram dropfallsdrops below the zeroline.

The Triple Screen strategy for this indicator suggests identifying the price trend on a higher chart interval (like daily time frame) and applying the bulls power on a lower chart timeframe interval (like hourly time frame). Signals are traded according to the indicator but only in direction of the long term trend in the higher time frame.