The strength of the buyers or sellers of the force can be calculated according to the values of RSI, DMI or Stochastic
indicator consists of:
. the base curve of the bulls
. the base curve bears
. the signal lines of each curve corresponding to the base curve smoothed with a moving average (EMA, SMA, and Wilder LWMA)
extreme market levels may be defined to identify areas of overbought market and oversold.
For this version, a standard deviation channel can be configured to measure market volatility
Interpretation Signals And Rules Of Trading
. Buy signal:
. The Bulls curve crosses the Bears upward curve - Trend bullish
. Bulls curve crosses upward Bulls signal line - Trend bullish
. The Bulls curve leaves the oversold level - Trend bullish
. Sell signal:
. The Bulls curve crosses down the Bears curve - trend bearish
. The Bears curve crosses down the line signal Bears - Trend bearish
. The Bears curve leaves the overbought level - Trend bearish
Read more about the rules and trading signals:
Exchange - Trading Bulls Power
Exchange - Trading Bears Power
Exchange - Trading RSI
Exchange - Trading Stochastic
Exchange - Trading DMI
Analysis Trading
Trade - Example
Exchange
Currencies Forex - EUR Cross / USD
Time Frame: 1 Hour - H1
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