Bulls Power Expert Advisor Setup - Setting Up Bulls Power Expert Advisor
Bulls Power Expert Advisor Setup - Setting Up Bulls Power Expert Advisor - A trader can come up with an Bulls Power Expert Advisor based on the awesome indicator explained below.
Bulls Power Expert Advisor rules can be combined with other Forex technical indicators to come up with other EA Robots that trade using rules based on two or more indicators combined to form a trading system.
Bulls Power Technical Analysis and 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 might 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.
The highest price will signify and show the maximum power of the Bulls within a price period.
The lowest price will signify and show the maximum power of the Bears within a price period.
This Indicator uses the High of the price and a Moving Average (Exponential)
The moving Average represents the middle ground between sellers and buyers for a certain price period.
Therefore:
Bulls Power = High Price - Exponential Moving Average
Bulls Power - Bulls Power Expert Advisor Setup
Forex Technical Analysis & Generating FX Signals
Buy Forex 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 Expert Advisor Setup
Exit Trading 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 Expert Advisor 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 direction of the long term trend in the higher time frame.
