Bulls Power XAUUSD Technical Analysis and Bulls Power XAUUSD Signals

Developed by Alexander Elder

Bulls Power is used to estimate the power of the Bulls (Buyers). Bulls Power estimates the balance of power between the bulls and bears.

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

Calculation

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

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

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

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

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

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

Therefore:

Bulls Power = High XAUUSD Price - Exponential Moving Average

Bulls Power

XAUUSD Technical Analysis & How to Generate Trading Signals

Buy XAUUSD Signal

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

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

Exit Trade Signal

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

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