Bulls Power EA Setup - Setting Up Bulls Power Expert Advisor

Bulls Power EA Setup - Setting Up Bulls Power EA - A trader can come up with an Bulls Power EA based on the awesome indicator explained below.

Bulls Power EA rules can be combined with other Forex trading indicators to come up with other Expert Advisor Forex Robots that trade using rules based on two or more indicators combined to form a trading system.

Bulls Power Forex Trading Technical Analysis & Bulls Power Signals

Created 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 indicator aims at identifying if a bullish trend will continue or if the price has reached a point where it may reverse.

Calculation

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

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

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

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

Therefore:

Bulls Power = High Price - Exponential Moving Average

Bulls Power - Bulls Power EA Setup

Forex Trading Analysis and Generating Signals

Buy Trading Signal

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

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

Bulls Power EA Setup

Exit Signal

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

Bulls Power EA Setup

The Triple Screen technique 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 interval (like hourly time frame). Signals are traded according to the indicator but only in the direction of the long term trend in the higher time frame.