Bulls Power Commodities Technical Analysis and 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 & bears.

This commodity indicator aims at identifying if a bullish commodity trend will continue or if the commodities price has reached a point where it might reverse.

Calculation

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

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

The highest commodities price will signify and show the maximum power of the Bulls within a commodities price period.

The lowest commodities price will signify and show the maximum power of the Bears within a commodities price period.

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

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

Therefore:

Bulls Power = High Commodities Price - Exponential Moving Average

Bulls Power

Commodity Technical Analysis & How to Generate Trading Signals

Buy Trading Signal

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

In an up commodities trend, the HIGH is higher than EMA, so the Bulls Power is above zero & Histogram/Oscillator is located above zero line.

Exit Trading Signal

If the HIGH falls under EMA then it means that commodities price are starting to fall, the Bulls Power histogram fall below the zero line.

The Triple Screen method for this indicator suggests identifying the commodities price commodities 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 direction of the long term commodity trend in the higher time frame.