The Bulls Power indicator overview
The indicator called the Bulls Power is used to foresee the reversal of the trend. It is a particularly good indication of the upcoming uptrend, that is the bullish market. And that is why you should enter a long position whenever you notice the Bulls Power is rising. In the opposite situation, when the indicator’s line is falling, the bears are taking control over the market. Nevertheless, I wouldn’t recommend opening the sell position on this basic.
Configuring the Bulls Power oscillator on the Olymp Trade platform
Once you are logged in to the Olymp Trade account and you chose the asset and the chart type, you need to find indicator feature and click on it. A new menu will pop up. Scroll down to the “Oscillators”. The Bulls Power will be among them.
At the foot of the chart, you will see a yellow line of the indicator. You can adjust the period, the colour and the thickness of the line. There is a horizontal line in the middle labelled “0”. There is an uptrend when the Bulls Power runs above this line, and a downtrend when below.
How to trade with the Bulls Power indicator on the Olymp Trade platform
The bulls are taking the market over when the indicator crosses the zero line and moves above it. And this is your task, to observe the Bulls Power line, is it moving below or above the zero line. Wait for the oscillator to cut the middle line and then enter a long position.
As I mentioned at the beginning, I wouldn’t suggest you open short positions based on the Bulls Power indicator. The market is about to change at any moment and you cannot predict a reverse with this oscillator. You can, though, identify an upcoming uptrend. So, with the Bulls Power go only long.
Go to the Olymp Trade practice account now and try trading based on the Bulls Power. Use the comments section to share your findings.
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