Trade Stock Indices

Bulls Power Indices Technical Analysis & Bulls Power Trading Signals

Developed by Alexander Elder

The Bulls Power indicator gauges buyer strength. It checks the balance between bulls and bears.

This analytical tool is designed to determine whether an uptrend is poised to continue or if the price has reached a peak from which a reversal might occur.

Calculation

Each price bar includes four key parts: open, close, high, and low prices.

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

The 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 Indicator uses the High of the price & a MA (Exponential MA)

The moving average (MA) serves as the midpoint between sellers and buyers over a specific price period.

Therefore:

Bulls Power = High Price - Exponential Moving Average

Bulls Power Indices Indicator - Bulls Power Indicator Lesson

Bulls Power

Technical Analysis and How to Generate Signals

Buy Signal

A buy trade signal is created when the Bulls Power oscillator indicator rises above Zero.

Within an uptrend, the HIGH price remains above the Exponential Moving Average, simultaneously the Bulls Power reading is positive (above zero), and the Oscillator is also situated above the zero line.

Bulls Power Stock Index Indicator Buy Trading Signal - Bulls Power Indicator Analysis

Exit Signal

If the HIGH goes under EMA, that means prices are starting to go down, and the Bulls Power chart goes below the zero line.

Bulls Power Stock Index Indicator Exit Signal Generated - Bulls Power Indices Indicator Analysis

The Triple Screen way of doing things for this technical indicator says to find the price trend on a chart with a bigger time frame (like a daily chart) and use the bulls powers on a chart with a smaller time frame (like an hourly chart). Trades are made based on the indicator, but only in the same direction as the long-term trend on the bigger time frame.

Learn More Lessons and Tutorials & Topics:

Stock Index Broker