Bull Power Bear Power 2
Trading signals for INDIA INDEX SVC@S&P CNX NIFTY INDEX (.NSEI) on 10/6/2008
If trading long positions, exit all long positions today with a Market On Close (MOC) order or at the market price on tomorrow's open.
If trading short positions, enter short today with a Market On Close (MOC) order or at the market price on tomorrow's open.
The concept of Bull Power and Bear Power was developed and introduced by Alexander Elder. Bull Power is calculated by subtracting a 13-period exponential moving average from the high price. This is typically displayed as a histogram oscillating above and below the zero line. A higher reading above the zero line gives strength to the Bull Power. Bear Power is calculated by subtracting a 13-period exponential moving average from the low price. This is also typically displayed as a histogram oscillating above and below the zero line. A lower reading below the zero line gives strength to the Bear Power.
This system doesn’t look at Bull Power/Bear Power directly. Instead, it looks at the 5-period linear regression slope of Bull Power and Bear Power to determine which one is gaining strength. Whichever one is showing a gain in strength is the position that it takes.
