Bulls Power Energies Technical 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 energies indicator aims at identifying if a bullish energies trend will continue or if the energies price has reached a point where it may reverse.

Calculation

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

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

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

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

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

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

Therefore:

Bulls Power = High Energies Price - Exponential Moving Average

Bulls Power

Energies 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 energies trend, the HIGH is higher than EMA, so the Bulls Power is above zero and Histogram/Oscillator is located above zero line.

Exit Trading Signal

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

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