Bulls Power Bitcoin Analysis & Bulls Power Trading 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 btcusd indicator aims at identifying if a bullish bitcoin trend will continue or if the bitcoin price has reached a point where it may reverse.

Calculation

A Bitcoin Price bar has 4 parameters: the Opening, Closing, High & Low of the bitcoin price bar.

Each Bitcoin Price bar either closes higher or lower than the previous bitcoin price bar.

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

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

This Technical Indicator uses the High of the bitcoin price & a Moving Average (Exponential)

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

Therefore:

Bulls Power = High Bitcoin Price - Exponential Moving Average

Bulls Power

Bitcoin Analysis & How to Generate Trading Signals

Buy Trading Signal

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

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

Exit Trading Signal

If the HIGH falls under Exponential Moving Average then it means that bitcoin price are starting to fall, the Bulls Power histogram fall below the zero line.

The Triple Screen method for this indicator suggests identifying the bitcoin price cryptocurrency 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 bitcoin trend in the higher time frame.