Bulls Power Silver Technical Analysis and Bulls Power Trading 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 and bears.
This silver technical indicator aims at identifying if a bullish silver trend will continue or if the xagusd price has reached a point where it may reverse.
Calculation
A Silver Price bar has 4 parameters: the Opening, Closing, High and Low of the xagusd price bar.
Each Silver Price bar either closes higher or lower than the previous xagusd price bar.
The highest xagusd price will indicate the maximum power of the Bulls within a xagusd price period.
The lowest xagusd price will indicate the maximum power of the Bears within a xagusd price period.
This Technical Indicator uses the High of the xagusd price and a Moving Average (Exponential)
The moving Average represents the middle ground between sellers and buyers for a certain xagusd price period.
Therefore:
Bulls Power = High Silver Price - Exponential Moving Average
Bulls Power
XAGUSD Trading Technical Analysis & How to Generate Trading Signals
Buy Silver Signal
A buy silver signal is generated when the Bulls Power oscillator moves above Zero.
In an up silver trend, the HIGH is higher than Exponential Moving Average, so the Bulls Power is above zero and Histogram/Oscillator is located above zero line.
Exit Trading Signal
If the HIGH falls under Exponential Moving Average then it means that xagusd price are starting to fall, the Bulls Power histogram fall below the zero line.
The Triple Screen technique for this indicator suggests identifying the xagusd price silver 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 silver trend in the higher time frame.
