Bulls Power Bitcoin Analysis & Bulls Power Trading Signals

Developed by Alexander Elder

Bulls Power is used to estimate the 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 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 Indicator uses the High of the bitcoin price & a MA (Exponential Moving Average)

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

Therefore:

Bulls Power = High Bitcoin Price - EMA

Bulls Power

Bitcoin Analysis and How to Generate Signals

Buy Trade Signal

A buy cryptocurrency signal gets 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 is located above the zero-line.

Exit Trade Signal

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

The Triple Screen method for this indicator suggests identifying the bitcoin 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). Signals are traded according to the indicator but only in direction of the long term bitcoin trend in the higher time frame.