Bulls/Bears Power oscillators are used to identify good entry/exit points. The indicators reflect the power of bulls and bears. It is recommended to use them together with the Exponential Moving Average indicator (EMA, the best period is 13).
How to interpret:
Buy signals:
- EMA is increasing
- Bears Power is negative, but increases diverging with the price chart.
- the last peak of the Bulls Power oscillator is higher than the previous one
It is better not to go long if the Bears Power is positive.
Sell signals:
- EMA is decreasing
- Bulls Power is positive, but decreases diverging with the price chart.
- the last low of the Bears Power oscillator is lower than the previous one
It is better not to go short if the Bulls Power is negative.
Divergence between the Bulls/ Bears Power and prices is the best time for trading.
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