What is the Bulls Power Indicator?
Bulls Power is an indicator of an uptrend. This indicator is used to draw up signals to mark the buying power of the asset market. Helping traders make better decisions about prices.
Calculation
Bulls Power indicator is calculated by the formula:
Bulls_Power (n) = HIGH – EMA (n)
Where:
- HIGH: The highest price of the current session.
- EMA (n): Exponential Moving Average with parameter n.
- n: Number of trading sessions for the EMA. Normally n will be taken by 13.
How to use the Bulls Power indicator
Bulls Power cross Zero Line
Bulls Power signal heading up and crossing Zero line means that buying motivation is increasing strongly. The price graph will start to reverse status from the downside to the upside at this time. You need to analyze this indicator to gain experience. When you have experimented with many Bulls Power you will easily recognize when to buy more.
Bulls Power is a Bullish indicator
This indicator only works to assess the purchasing momentum of the market, increasing the accuracy of purchase timing. If you want to use it to find when prices are going to fall or sell, you must use the Bears Power indicator instead.
Combine different indicators
You can combine EMA, SMA, Bollinger Bands to help increase the accuracy of your decision. The more complex indicators combine, the more accurate you are.
