Bulls Power Stocks Technical Analysis & Bulls Power Stocks 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 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 might reverse.
Calculation
A Stocks Price bar has 4 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 Indicator uses the High of the stocks price & a Moving Average (Exponential)
The moving Average represents the middle ground between sellers and buyers for a certain stocks price period.
Therefore:
Bulls Power = High Stocks Price - Exponential Moving Average
Bulls Power
Stock Technical Analysis and 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 EMA, so the Bulls Power is above zero and Histogram/Oscillator is located above zero line.
Exit Trading Signal
If the HIGH falls under EMA then it means that stocks price are starting to fall, the Bulls Power histogram fall 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 time frame). Signals are traded according to the indicator but only in direction of the long term stocks trend in the higher time frame.
