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

Data Collection Notice

We maintain a record of your data to run this website. By clicking the button, you agree to our Privacy Policy.

facebook logo with graphic

Join Us on Facebook

Stay on top of company updates, trading news, and so much more!

Thanks, I already follow your page!
forex book graphic

Beginner Forex Book

Your ultimate guide through the world of trading.

Get Forex Book

Check Your Inbox!

In our email, you will find the Forex 101 book. Just tap the button to get it!

FBS Mobile Personal Area

market's logo FREE - On the App Store

Get

Risk warning: ᏟᖴᎠs are complex instruments and come with a high risk of losing money rapidly due to leverage.

76.5% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider.

You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money.

Bulls Power and Bears Power

Information is not investment advice

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

Popular

The NFP Release: One More Punch for USD?

The United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on August 5, 15:30 GMT+3.

The UK Speeds Up Tightening

The Bank of England (BoE) will share its Official Bank Rate and make a statement on monetary policy on August 4, 14:00 GMT+3.

Is Australia Ready for More Hikes?

The Reserve Bank of Australia (RBA) will release its interest rates and make a statement on August 2, 7:30 GMT+3.

Choose your payment system

Be on top of your game

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

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