Bulls Power Stocks Analysis and Bulls Power Stocks Signals

Developed by Alexander Elder

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

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

Calculation

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

Each Stocks Price bar either closes higher or lower than the previous stocks price bar.

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

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

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

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

Therefore:

Bulls Power = High Stocks Price - Exponential Moving Average

Bulls Power

Stock Analysis & How to Generate Signals

Buy Stock Signal

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

In an up stock trend, the HIGH is higher than Exponential MA, so the Bulls Power is above zero and Oscillator is located above the zero-line.

Exit Trade Signal

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

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