Bulls Bears Power Forex Trading Strategy

Trading in the forex market is often very confusing. People who are new to trading are often confused when looking at price charts. Most would think that the price chart is a meaningless movement of bars and candlesticks across the chart, moving up and down randomly. Even many experienced traders sometimes think this way, especially when the market is not showing a clear direction.

It is partly true that the market moves randomly. Price movements are based on each trader's feelings and beliefs about prices. If a trader believes that the price has gone too high and could reverse course, and if the trader acts on that belief and enters a sell trade, that action will help push the price down.

Conversely, if other traders think the price will go up and react to it, then the price will be pushed higher. It is impossible to predict the thoughts and beliefs of millions of traders and market participants. The only way to accurately predict exact price action is to know what each trader is thinking.

While it is impossible to predict how every trader will think, it is possible to get a good estimate of what the crowd will think. This is called market sentiment. If the market is mostly bullish, the market will most likely go up. If it mostly declines, the price will most likely be pushed lower.

Bulls Bears Power Forex trading strategy is a strategy that incorporates market sentiment into its trading construction. It uses various indicators to help traders identify the trade direction they need to take in order to get higher probability trades.

The bull brings power

Bulls Bears Power is a special indicator designed to help traders see the overall market sentiment. It is based on mathematical calculations of historical price movements, which are the most recent actions taken by most markets.

Bulls Bears Power is displayed as an oscillator. This draws the histogram bars which can be positive or negative. Positive bars indicate a bullish market bias, while negative bars indicate a bear market bias. Positive bars are green while negative bars are red.

This indicator can be used both as a market bias filter and as an entry signal. As a filter, traders can avoid trades that go against the general trend of the market by looking at the color of the histogram bars. Traders can also use bars that change color or bars that move above zero as entry signals based on a possible trend reversal.

Hanging Lamp Stop v1

One way to spot a potential trend reversal is to see if the price has moved against the direction of the current trend by a magnitude greater than a certain multiple of the Average True Range (ATR). Some traders believe that the trend reverses when the price has reversed more than double or triple the current ATR. This is because the price has to move within a certain range and the candles have to average within a certain range. When the price moves in one direction more than the current average, the market is trending. When the price moves more than the average range against the current trend, the market trend reverses.

This concept is the basis of the Chandelier Stops v1 indicator. It identifies the direction of the current trend and draws a line against the current trend based on ATR multiples. When the trend is bullish, it draws a blue line below the price action. When the trend is down, it draws a red line above the price action. If the price breaks and closes this line, the market trend may reverse.

trading strategy

This trading strategy is a momentum trading strategy that filters out momentum signals that go against the current market trend and direction.

The Bears Bulls Power indicator is used to identify market sentiment. This is based on whether the bar is positive or negative.

The Chandelier Stops v1 indicator is used to identify the direction of the trend. This is easy based on where the line is in relation to price action as well as the color of the line.