The Bulls Bears Power Indicator for MT5 is a technical analysis tool that evaluates the strength of bulls (buyers) and bears (sellers) in the market. It helps Forex traders determine the direction of the market trend and potential price reversal zones.
The indicator determines the overall strength of bulls and bears by assessing the difference between the highest/lowest price and the exponential moving average (EMA). The strength of bulls and bears is displayed as bar charts for easy visualization.
Histogram bars above the zero line indicate bullish strength in the market, suggesting a potential bullish move. Conversely, bars below the zero line indicate greater bearish strength, suggesting a potential bearish move.
How to trade With the Bulls Bears Power Indicator for MT5
The image below shows the analysis of the strength of bulls and bears on the EUR/USD currency pair using the Bulls Bears Power indicator.
The indicator for MT5 can be used by scalpers, day/intraday and Forex swing traders to determine buy or sell setups. However, it is recommended to use it in sync with the direction of the market trend. A buy or sell setup that follows the direction of the trend mitigates false signals caused by market fluctuations.
So, for example, in an uptrend, wait until the histogram bars cross the zero line (suggesting bullish strength) before looking for a buy entry. Likewise, look for selling opportunities in a downtrend after the histogram bars cross the zero line.
Setting
The indicator comes with the following customizable settings:
Period: Period to calculate bull and bear strength.
Smoothing Method: This shows the method for averaging the indicator.
Price: This shows the price type for calculating.
Conclusion
The Bulls Bears Power Indicator for MT5 can be a valuable technical trading tool for identifying changes in bullish and bearish market dynamics. Finally, it can be downloaded for free.
