About the Bulls Power Oscillator Indicator
The Bulls Power Oscillator indicator for MT4 measures bullish momentum by comparing price highs to an exponential moving average.
Values above zero suggest buying pressure, while values below zero suggest bearish pressure.
The indicator helps traders gauge the strength of a trend and time entries.
For more reliable signals, it should be used with a trend indicator, such as a 100- or 200-period simple moving average, or Ichimoku Kinko Hyo.
In an uptrend, traders focus only on bullish signals; in a downtrend, only bearish signals are traded.
The Bulls Power Oscillator works across all currency pairs and multiple timeframes, from scalping to swing trading.
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Key Features
- Oscillator measuring bullish momentum relative to a moving average.
- Signals above zero indicate buying pressure, below zero indicate selling pressure.
- Works best when combined with a trend indicator.
- Shows potential entry points in trending markets.
- Compatible with all currency pairs and timeframes.
Indicator Chart
The chart shows the Bulls Power Oscillator below the price area.
Bars above zero highlight bullish momentum, while bars below zero indicate bearish momentum.
Traders use the indicator with a trend filter like the 100 SMA to confirm the trade direction.
Guide to Trade with Bulls Power Oscillator
Buy Rules
- Confirm the trend is upward using a trend indicator like a 100 SMA or Ichimoku.
- Wait for the Bulls Power value to cross above the zero line from below.
- Enter a buy trade once the signal aligns with the uptrend.
- Focus on entries when momentum is building in the bullish direction.
Sell Rules
- Confirm the trend is downward using a trend indicator.
- Wait for the Bulls Power value to cross below the zero line from above.
- Enter a sell trade once the signal aligns with the downtrend.
- Focus on entries when bearish momentum is strengthening.
Stop Loss
- For buy trades, place the stop below the nearest support level.
- For sell trades, place the stop above the nearest resistance level.
- Trail stops along higher lows (buy) or lower highs (sell) as price moves in your favor.
Take Profit
- Close buy trades when the Bulls Power Oscillator crosses back below zero.
- Close sell trades when the Bulls Power Oscillator crosses back above zero.
- Partial profits can be taken if price reaches key support or resistance before the opposite signal.
Bulls Power Oscillator and Trend Candlesticks Forex Scalping Strategy for MT4
This MT4 scalping strategy combines momentum strength with price action using the Bulls Power Oscillator Indicator and the Trend Candlesticks Indicator.
The Bulls Power Oscillator identifies shifts in buying and selling strength, generating a buy signal when it crosses above zero from below and a sell signal when it crosses below zero from above.
The Trend Candlesticks visually highlight the market direction with green candlesticks for bullish trends and pink candlesticks for bearish trends.
Using both indicators together allows scalpers to enter trades in line with market momentum and price trend direction, making it effective for M1 and M5 charts.
Buy Entry Rules
- Confirm that Trend Candlesticks are green, indicating a bullish trend.
- Wait for the Bulls Power Oscillator to cross above the zero line from below.
- Enter a buy trade at the close of the candle where the crossover occurs.
- Place a stop loss below the recent swing low or below the nearest support level.
- Take profit when the oscillator crosses back below zero or Trend Candlesticks turn pink.
Sell Entry Rules
- Confirm that Trend Candlesticks are pink, indicating a bearish trend.
- Wait for the Bulls Power Oscillator to cross below the zero line from above.
- Enter a sell trade at the close of the candle where the crossover occurs.
- Place a stop loss above the recent swing high or above the nearest resistance level.
- Take profit when the oscillator crosses back above zero or Trend Candlesticks turn green.
Advantages
- Combines momentum strength and price action for high-probability scalping entries.
- The Trend Candlesticks indicator simplifies trend identification.
- Bulls Power Oscillator provides objective, quantifiable entry signals.
- Effective on short-term M1 and M5 charts for scalping.
- Helps avoid trades against prevailing market direction.
- Works well in trending market conditions for quick scalp gains.
Drawbacks
- The Oscillator may give false signals during choppy or sideways markets.
- Trend Candlesticks may lag slightly in rapidly reversing conditions.
- Requires active monitoring on short timeframes to capture timely entries.
- Fewer quality setups may occur during low volatility periods.
Example Case Study 1
On EURJPY M1, Trend Candlesticks were green, showing a bullish trend.
The Bulls Power Oscillator crossed above zero from below, confirming a buy setup.
A trade was entered at candle close with a stop loss below the recent support level.
Price moved upward, and the trade was closed when the oscillator crossed back below zero, making a 17 pip gain.
The combination of trend and momentum ensured a high-probability scalp.
Example Case Study 2
On GBPJPY M5, Trend Candlesticks turned pink, indicating a bearish trend.
The Bulls Power Oscillator crossed below zero from above, signaling a sell opportunity.
A trade was entered at candle close with a stop loss above the recent resistance.
Price declined steadily, and the trade was exited when Trend Candlesticks turned green, producing a 22 pip profit.
Aligning the candlestick trend with the oscillator crossover captured the core of the intraday move.
Strategy Tips
- Combine signals with higher timeframe trend analysis to confirm overall market direction.
- Use multiple currency pairs to increase scalp opportunities during active sessions.
- Consider scaling out partial positions when the move reaches significant intraday levels.
- Monitor volatility to avoid entering trades in low activity periods that may produce false signals.
- Use alerts for Bulls Power crossovers to ensure timely entries without constant monitoring.
- Be patient and skip trades if Trend Candlesticks and oscillator signals do not fully align.
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FAQ
Can I trade without a moving average?
Technically yes, but signals are more reliable when aligned with a trend filter like a 100 or 200 SMA. It reduces false entries in sideways markets.
How do I know the trend direction?
Use a trend indicator such as SMA or Ichimoku. Only take bullish signals in an uptrend and bearish signals in a downtrend.
Can it help identify momentum strength?
Yes, the distance from the zero line reflects the strength of bullish or bearish momentum. Larger bars mean stronger momentum.
Summary
The Bulls Power Oscillator is a momentum-focused indicator that helps traders identify bullish and bearish strength in the market.
Combining it with a trend filter allows for higher-probability trades in line with the prevailing trend.
Forex traders can use the zero line and bar height to gauge both entry timing and the strength of price moves.
