Bulls Power Technical Analysis & Bulls Power Trading Signals

Developed by Alexander Elder

Bulls Power is used to measure the 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 xagusd price has reached a point where it may reverse.

Calculation

A Silver Price bar has four parameters: the Opening, Closing, High & Low of the xagusd price bar.

Each 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 Indicator uses the High of the xagusd price and a Moving Average (Exponential MA)

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

Therefore:

Bulls Power = High Price - Exponential MA

Bulls Power

Trading Analysis and How to Generate Trade Signals

Buy Signal

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

In an up trend, the HIGH is higher than Exponential Moving Average, so the Bulls Power is above zero and Histogram is located above the 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 fallfallsdrops below zero line.

The Triple Screen technique for this indicator suggests spotting the xagusd price trend on a higher chart interval (like daily time frame) and applying the bulls power on a lower chart timeframe interval (like hourly time frame). Signals are traded according to the indicator but only in direction of the long term trend in the higher time frame.