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Hi…Today In this article, I am going to talk about one of the most popular trading indicators i.e Bulls Power that you can easily find on Pocket Option. You can use this indicator on any asset at any given time. I personally love to use this indicator on long-time frame charts. In this article, I will cover everything about Bulls Power Indicator and how to use it on Pocket Option.
What is Bulls Power Indicator?
Bulls Power = High – EMA
Bulls Power Indicator is also known as Elder Ray Indicator. as this indicator was developed by Dr Alexendar Elder in 1989. The Elder Ray indicator is a combination of the three most important indicators i.e Bulls Power, Bears Power, & EMA.
You can easily find the Bulls Power by subtracting an exponential moving average (mostly 13 days period) with the highest closing price of the security.
This indicator represents the capacity of the bulls to push the price above the average accepted price or value. the indicator represents the strengths of the bulls or buyers. this indicator rises when the bulls are dominating the market and vice versa falls when the bears are dominating the market.
How to find and set Bulls Power Indicator on the Pocket Option?
You can sign up here…try…
Once, you have signed up, click on the indicator button and search for the indicator in the menu.
In case, you don’t like the colour of the indicator. click on the pencil icon to change it.
How to trade with the Bulls Power indicator?
Trading with the Bulls Power indicator is very easy. As you can see above, one green line that line is called an EMA line and the middle line is also known as the ‘0’ line. when the EMA line intersects the ‘0’ line the indicator generates buy and sell signals. when the EMA line is below the ‘0’ line in a rising position it is a signal of a bullish trend similarly when the EMA line is above the ‘0’ line in a falling position is a signal of a bearish trend.
Given above is a chart of AUD/CAD, and we can see above the EMA line is below ‘0’ in a rising position. It indicates the upcoming bullish trend so, here we can place a buy trade. as you can above I have marked with a yellow line the rise in the price of the asset later.
Similarly, you can see above the EMA line is above the ‘0’ line in a failing position it is a signal of an upcoming bearish trend. so, here we can place a sell trade. as you can see above later there is a good decline in price marked I have marked with a yellow line.
Confirm the trend
You can also use similar indicators like RSI or Stochastic to confirm the strength of the trend. As you can see above when the RSI line is at an overbought level plus the Bull’s power is above ‘0’ and in a falling position, it is a signal of an upcoming bearish trend so, here we can place a sell trade.
Similarly, when the RSI line is below the oversold level plus the EMA line is below zero and is in a rising position it is a signal of an upcoming bullish trend and here, we can place a buy trade.