The bulls and the bears struggle defines which way will the price move. Due to assessment of the bulls and the bears powers balance, the indicator enables to forecast possible change of trend. Like the Bears Power, the Bulls Power indicator was designed by Alexander Elder, who described it in more details in the “How to play and to win on the market”.
The indicator is based on the difference between the maximal rate and 13-period exponential moving average (H - EMA).
Bulls Power is mostly used in combination with moving average or another trend indicator. The sell signal appears once the trend indicator has a decelerating direction and the bulls power indicator is above the zero level nd is decreasing.
