Bulls Power Indicator

Bulls Power Indicator

Bulls Power indicator determines the strength of bullish market trends and helps anticipate precise buy signals.

The Bulls Power is an automatic trend-tracking indicator especially developed for assessing bullish market strengths on MT4 charts.

The bull power indicator’s main objective is to calculate the relative strength of long traders compared to the selling pressure. It simply determines if the price exceeds the previous market high, confirming whether buyers dominate the market.

Read through this interactive trading guide to learn more about how the indicator works in MT4 platforms.

How to Anticipate Accurate Buy-Sell Signals Using the Bulls Power Indicator for MT4
The Bulls Power indicator delivers real-time trend signals using histogram bars in a separate indicator window. When the indicator value turns positive, the bars appear above the zero-level to signal a valid bullish trend.

In the above EURUSD 1-hourly chart, the price was initially consolidating within a short price range. However, the Bulls Power value was positive from the beginning to signal a bullish sentiment. Later, the price exceeded the resistance and the indicator bars kept rising above zero, indicating a buy entry following the bullish breakout.

After you enter long, hold the position until the bull power bars remain above zero. Once the indicator value turns negative, you can go for a buy-exit.

Besides breakouts, it also helps anticipating pullback entries in trend-following markets. In such a case, we’ll wait for the price to reject a significant support/resistance and match the price action with the indicator signal before deciding an entry.

Conclusion
The Bulls Power generates useful technical information about the current market sentiment, enabling you to go for versatile trading approach. Technically, this indicator is mostly used to verify the validity of a bullish market trend. Alternatively, it may help you build trend-following trading strategies when combined with other MT4 trend indicators.