Bulls Power and Bears Power

Bulls Power and Bears Power

The Bull Power and Bear Power are the oscillators developed by Dr Alexander Elder. They measure the power of buyers (bulls) and sellers (bears) to push the price in their favor, i.e. above or below a baseline. The two indicators combined are known as Elder-Ray Index. The function of a baseline is often performed by a 13-period Exponential Moving Average (EMA) of closing prices.  

The logic is simple: the market situation is constantly changing as bears turn into bulls and vice versa. The indicators help to track this conversion and trade on it. 

How to implement

The Bull Power and the Bear Power belong to the default set of MetaTrader. You can add them to the chart by clicking “Insert” – “Indicators” – “Oscillators” and then choosing “Bull Power”/“Bear Power”.

The Bull Power and the Bear Power metatrader

You can use the indicators individually but there’s much more sense to use them together as was planned by Elder. In addition to both indicators, plot the 13 EMA itself on the chart as well. This way you will combine the oscillators with a trend-following tool and increase the quality of the entry signals. The exponential moving average acts as a filter: it shows a trend, so that a trader could pick only those signals which are in the direction of this trend.

How to interpret indicators of Bulls Power and Bears Power

All 3 indicators form a kind of basis for a trading strategy. 

A setup for a buy trade occurs when the following conditions are met:

  • EMA is increasing.
  • Bears Power is negative but increases.

There are also other optional cut desirable conditions:

  • The last peak of the Bulls Power oscillator is higher than the previous one.
  • There’s a bullish divergence between the Bears Power and the price (the price is setting lower lows, but the Bears Power fails to do so).

It is better not to go long if the Bears Power is positive.

Bears Power

A setup for a sell occurs when the following conditions are met:

  • EMA is decreasing.
  • Bulls Power is positive but decreases.

There are also other optional cut desirable conditions:

  • The last low of the Bears Power oscillator is lower than the previous one.
  • There’s a bearish divergence between the Bulls Power and the price (the price is setting higher highs, but the Bulls Power only manages to form only lower highs).

It is better not to go short if the Bulls Power is negative.

the Bulls Power is negative

All in all, the Bulls/Bears Power indicator allows seeing the forces that are driving the market and suggest a simple but efficient basis for a trading strategy

Latest news

ECB report is in focus

The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time. 

Markets await Biden to unveil "trillions dollars"

Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.

USD came under selling pressure

The US dollar’s weakness offered a boost to emerging-market currencies and oil.

Frequently asked questions

  • How to get the Trade 100 bonus?

    Boost your trading skills with free $100 from FBS. To activate this option, open a Trade 100 bonus account with $100 in it. Use the money during 30 days of active trading and trade five lots.  If you succeed, you can get your profit of $100. It is a win-win offer! Not only do you get a chance to profit, but you can also test the real markets and train your FX skills. 

  • How to open an FBS account?

    Click the ‘Open account’ button on our website and proceed to the Personal Area. Before you can start trading, pass a profile verification. Confirm your email and phone number, get your ID verified. This procedure guarantees the safety of your funds and identity. Once you are done with all the checks, go to the preferred trading platform, and start trading. 

  • How to withdraw the money you earned with FBS?

    The procedure is very straightforward.  Go to the Withdrawal page on the website or the Finances section of the FBS Personal Area and access Withdrawal. You can get the earned money via the same payment system that you used for depositing. In case you funded the account via various methods, withdraw your profit via the same methods in the ratio according to the deposited sums.

  • How to start trading?

    If you are 18+ years old, you can join FBS and begin your FX journey. To trade, you need a brokerage account and sufficient knowledge on how assets behave in the financial markets. Start with studying the basics with our free educational materials and creating an FBS account. You may want to test the environment with virtual money with a Demo account. Once you are ready, enter the real market and trade to succeed.

Deposit with your local payment systems

Learn more

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera