Today I want to tell you about a technical analysis tool that can be useful in trading for both novice traders and those who already have some trading experience. Its algorithm contains the testimony of two well-known and well-established indicators: Bears Power and Bulls Power. Hence the name – Bulls Bears Power. This combination improves signal quality and improves trading performance. In MT4, this indicator is set according to the diagram used for any technical analysis tools. This means that you copy the file and place it in the Program Directory Indicators folder. Then restart the trading platform or press the “Update” button in the “Indicators” menu in the navigator.

Bulls Bears Power

With pointer settings problems should not be because the parameters are only two: BBPeriod and TypeMA. With variable BBPeriod you need to specify how many candles to use to analyze the market situation. The indicator uses a moving average. The entrepreneur has the opportunity to choose his type. That’s what TypeMA is all about. This is done with numbers. If we want the indicator to use a simple MA, we rewrite 0.  For the use of EMA – 1, SMMA (smoothed MA) – 2, linearly weighted (linearly weighted) – 3. To get started, you can try trading with default settings installed. And then you can try to improve the performance of the signals by changing the values of the variables. In general, they should be selected taking into account the trading tool and the time frame. When choosing large values, the Bulls Bears Power indicator will not respond to slight fluctuations in the quotes. There will be fewer signals, but their quality will be higher. And therefore, the opposite is true.

Trading conditions

With this indicator to work very simply. The graph is presented in the form of a histogram:

effective bulls bear power indicator

The signal for the opening of a trading position is an overrun of the zero line indicator. If it goes in a bottom-up direction, it means you can buy it. That’s the market situation on my screen. In addition, the price has overcome the level of resistance, which increases the likelihood of successful entry into the market. To open a sales offer, you must cross the zero line from top to bottom. Histogram Bulls Bears Power can also be used to close orders. This is done when there is a signal to open the transaction in the opposite direction. To check the performance of the indicator and the selection of parameters, you need to use a demo account. In addition, I recommend choosing an additional technical analysis tool with which you can filter incoming signals. 10100 Bulls-Bears-Power Inga Fedorova 11.10.2020 Record Effective Bulls Power Indicator first appeared forex Traders Magazine