Bulls Power Bitcoin Trading Analysis and Bulls Power Bitcoin Trading Signals

Developed 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 btcusd price has reached a point where it might reverse.

Calculation

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

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

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

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

This Indicator uses the High of the btcusd price and a Moving Average (Exponential)

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

Therefore:

Bulls Power = High Bitcoin Price - Exponential Moving Average

Bulls Power

Bitcoin Trading Analysis and Generating Bitcoin Trading Signals

Buy Bitcoin 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 Signal

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

The Triple Screen method for this indicator suggests identifying the btcusd 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 the direction of the long term bitcoin trend in the higher time frame.