The main idea The assessment of the balance of Bulls and Bears forces has the great influence. Bulls Power: definition and formula Bulls Power is the difference between the highest forex bulls and 13 – period exponential moving average.
When there is a rising trend in the market, the indicator is bigger than zero. Bulls Power indicator is less than zero. Bears Power: definition and formula Bears Power indicator is opposite than the Bulls Power indicator. Then the downward trend is weak, the indicator Bears Power will be less than zero. In this case the slope of the last shows the direction of prices. The challenge is to combine indicators in a smart way. This means that indicators should deliver different type of information about the market and confirm each other rather than duplicate signals.