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Bulls power is one of the underrated trend indicators that you can easily find in the Olymp Trade trend section.
What is the Bulls Power indicator?
Bulls power indicator is an important component of the Elder Ray indicator or Elder Ray index. The indicator was developed by Dr Alexendar Elder in 1989. his main motive was to help traders to see the market like an X-Ray machine.
This indicator is derived by subtracting the EMA or exponential moving average recommended by Elder is the 13-day EMA of a closing price from a high price of any given security. You can use this indicator on any given security via this you can see the upcoming possible trends.
Configure the Bulls Power indicator on Olymp Trade
Your first job is to log in to your Olymp Trade account => click on the indicator button => search for the indicator in the menu => and select the name.
Know the Bulls power indicator
This indicator is made from the composition of EMA or exponential moving average and the EMA line ribbons around a middle line labelled as the ‘0’ line. when the indicator line intersects the “0” line it generates buy and sell signals. when the indicator line cuts the “0” from the bottom and stay above the line it is a signal of a bullish trend and vice-versa when the indicator cuts the “0” line from the top and stay below the line it is a signal of a bearish trend.
How to trade with the Bulls power indicator on the Olymp Trade platform
Given above is a 1-hour chart of EUR/ USD, and we can clearly see the EMA line cuts the middle line from the bottom. It is the best time to place a buy trade with a 1-hour time frame.
Similarly, we can see above the EMA line cuts the middle line from the top and that’s the best time to place a sell trade with a 1 – hour time frame.
So, this is how you trade with the Bulls power indicator. However, never ever open a short-term trade with this indicator as it helps you find the upcoming trend and not the current trend. You can combine this indicator with Parabolic SAR.
Go and try this awesome indicator on the Olymp Trade demo account. In case you face any problems do comment below. I will surely help you.