Bulls Power Energies Technical Analysis & Bulls Power Trading Signals

Developed by Alexander Elder

Bulls Power is used to measure 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 may reverse.

Calculation

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

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

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

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

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

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

Therefore:

Bulls Power = High Price - Exponential MA

Bulls Power

Technical Analysis & How to Generate Trading Signals

Buy Trading Signal

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

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

Exit Trade Signal

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

The Triple Screen method 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 timeframe). Signals are traded according to the indicator but only in direction of the long term energies trend in the higher time frame.