Bull Bear Power Indicator

[Saver0]

I have been working on trying to gauge the power of the bulls/bears with candles. I made the following indicator after seeing a pattern in candles that show the shift in balance between bulls/bears power.

There are 4 simple settings that can produce very different results:

maxBars = 2000; //Number of bars which you want to indicator to calculate results for
timeFrame = 15-M15; //Time frame which the indicator should check the power on. This should be lower than the current time frame for the best results.
showDiff = false; //If it's true, it will show the difference between bulls and bears
last_bars = 6; //This will sum up the number of last number of bars that you specify

You can use this to see during tops and bottoms if it will in fact be a top or a bottom pretty well because in order for the price to change direction, it’s necessary for price to build up enough force in the opposite direction. It’s much easier for price to go in the same direction.
You can also use this to identify strong bull/bear zones which the price would retrace to in most cases.
With a large last_bars setting and showDiff set to true, you can use this to spot divergences and compare directly with price.

It would be nice if you could take the time to play with various settings to come up with your own way of trading it.

Attached is a screenshot of the indicator with 3 different sets of settings. It’s evidence from this indicator that bulls are still stronger than the bears. So taking a long trade is the best choice.

• This topic was modified 9 years, 6 months ago by Saver0. Reason: Fixed a major calculation bug

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Focus, Patience, Determination & Order in chaos

[Femo]

Good job Savero! Thanks for sharing, i will report back on result.

Regards
fm

[Saver0]

Update: Please download the indicator again. I fixed a bug.

Awesome @Femo!

I hope its not too confusing. Having many settings and different interpretations can be difficult. I want to give everyone many options to play with so you can figure out the best settings that fits your system and personality. It can be used for different style of trading as well, you can use it for scalping the next candle, or for swing trading, or for long term directional bias. I think mastering this indicator could produce very good results.

As for the main logic of this indicator, what it’s doing is its looking for candles where the previous is a bullish/bearish and the current one is bearish/bullish. Opposite setups. And then measures the strength at these locations. The strength I hypothesis as the previous Low to current Close for bullish and previous High to current Close for bearish setups. Here is how to interpret it and what’s going on..

Please ask me if you have any questions.

• This reply was modified 9 years, 6 months ago by Saver0.

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Focus, Patience, Determination & Order in chaos

[Saver0]

Here is a demonstration of the real power of this indicator 

 

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Focus, Patience, Determination & Order in chaos

[fxrambo]

Saver0 wrote:

Update: Please download the indicator again. I fixed a bug. Awesome @Femo! I hope its not too confusing. Having many settings and different interpretations can be difficult. I want to give everyone many options to play with so you can figure out the best settings that fits your system and personality. It can be used for different style of trading as well, you can use it for scalping the next candle, or for swing trading, or for long term directional bias. I think mastering this indicator could produce very good results. As for the main logic of this indicator, what it’s doing is its looking for candles where the previous is a bullish/bearish and the current one is bearish/bullish. Opposite setups. And then measures the strength at these locations. The strength I hypothesis as the previous Low to current Close for bullish and previous High to current Close for bearish setups. Here is how to interpret it and what’s going on.. Please ask me if you have any questions.

hi saver0 or somebody else please is possible for the indicator on first post to be posted in rar format that’s the only way I can be able to download files in this forum

[Femo]

fxrambo wrote:

hi saver0 or somebody else please is possible for the indicator on first post to be posted in rar format that’s the only way I can be able to download files in this forum

 

Here you go mate.

fm

• This reply was modified 9 years, 6 months ago by Femo.

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[fxrambo]

Femo wrote:

fxrambo wrote:

hi saver0 or somebody else please is possible for the indicator on first post to be posted in rar format that’s the only way I can be able to download files in this forum

Here you go mate. fm

Femo wrote:

fxrambo wrote:

hi saver0 or somebody else please is possible for the indicator on first post to be posted in rar format that’s the only way I can be able to download files in this forum

Here you go mate. fm

Femo wrote:

fxrambo wrote:

hi saver0 or somebody else please is possible for the indicator on first post to be posted in rar format that’s the only way I can be able to download files in this forum

Here you go mate. fm

Femo wrote:

fxrambo wrote:

hi saver0 or somebody else please is possible for the indicator on first post to be posted in rar format that’s the only way I can be able to download files in this forum

Here you go mate. fm

thank you so much bro now I can download it I don’t know why I have this problem in this forum only

[Pigh77]

Nice indicator Saver0!

thank you for sharing

[Innate]

Saver0 wrote:

Here is a demonstration of the real power of this indicator

If I am reading your indi correctly it is showing a change in direction well in advance of it happening. This indi needs more study.

Thank you!

What's it all about? It's all about money.

[iCONE]

Hi all,

 

Thank you Saver0 for sharing this indi and the way you use it.

I’m actually thinking it can be really powerfull with an indi like supply & demand zones.

If we combine this with your spike Chart (post 4415) we will probably  see where buyers/sellers are going to buy/sell again. 

 

Regards

 

[Saver0]

Innate wrote:

If I am reading your indi correctly it is showing a change in direction well in advance of it happening.

Yes it is, this is a leading/future indicator. So just use another form of confirmation to make the trade

iCONE wrote:

If we combine this with your spike Chart (post 4415) we will probably  see where buyers/sellers are going to buy/sell again.

Yup, that’s the primary way that I’m using it. I just want to identify zones/levels where the key players are interested in and then gauge the power of the players in these zones to tell me the direction. It’s not as easy but this makes it easier

Focus, Patience, Determination & Order in chaos

[Saver0]

Here is how to scalp in M1
Read the two lines only to understand who is in control and to see who is getting stronger/weaker. Enter when the weaker shows strength, this is when the weaker will get crushed again.
This means.. if you see Red line above Lime (bears stronger than bulls), wait for Lime line to go up and hook down to short as long as the bears have shown strength compared to the bulls. What’s important is whats happening now. Past is only for determining previous strong/weak zones to see the market reaction around these levels again.

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[Anonymous]

Excellent Saver0

 

How do I set it up like this with the moving average vs Bull Bear diff?

[Anonymous]

I got it…

[Anonymous]

This the expectation for a return to value we can grid trade away from the area to be cleared and benefit in this way as price returns for balancing.

 

Thoughts

[Anonymous]

Saver0

I’m trying to make sense out of the last bars setting. Am I to randomly place numbers or is there a mathematical connection with the other setting?

 

Thanks Again!!!

[Pigh77]

Hi guys, I am now far from the trading, could you please share more screenshots on different currencies? thank you very much!

[Saver0]

Anonymous wrote:

This the expectation for a return to value we can grid trade away from the area to be cleared and benefit in this way as price returns for balancing.

Yes, pretty much that is the idea. The price should return to “value”. In this case the value is towards the direction of the strength.
So wait for price to move away or move against the strength, wait for a proper price setup (maybe a few candle closes in the direction of the strength) and then place the trade.

You always need to know why the price moved. If the price move against the strength, try to understand why it moved. It could have been a major news event, in that case the current candle’s strength would be the most important.

Anonymous wrote:

I’m trying to make sense out of the last bars setting.

There is no set formula for the last bars.. I added this only to produce a smoothed or more of a wave type line. This indicator I think should be used with last_bars set to 0 because whats important is what’s happening now. If you set last_bars to 100, then it will show the sum of the past 100 bars and this can be a bit misleading. It can be used to gauge the overall strength though.

Pigh77 wrote:

could you please share more screenshots on different currencies? thank you very much!

I’m very busy these days with a new project at work so I barely have time to even place a trade. I will try to show examples from time to time whenever I get a chance. Please play with this indicator and use the last_bars 0 to see the bars that its actually identifying as bull/bear bars. Here is an example..

Also take a note at the 2nd to last vertical red line that I drew where its a bull bar but with major bear strength, see what happened in the next candle? It became a bear candle where the low was below the open of the previous bull candle.

We have to learn to read the chart like a book to understand the story  I’m now a strong believer that this is the best and the easiest way to trade.

—- If you find this indicator helpful, please comment and share your thoughts so I can spend the time to further develop it.

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[smallcat]

Thanks Saver0. Looking at the Green & Red vertical line, you draw it at the peak of the Green/Red  bull bear indicator line. Does it mean that we will put order at the close of next candle after the vertical line (because to see the peak we must wait 1 more candle) ??

[Rahat Lukum]

I second to Smallcat, when I don’t know how’s the calculation done, I’m in trouble   I understand no source will be given, but maybe enough hints to replicate the calculation part on other platforms? 

[Anonymous]

When trading the fast line back to the higher trend/the slow line be careful not to get caught in a trend change. The fast line doesn’t come back to the slow line when the trend changes, it is exactly the other way around.

[Saver0]

smallcat wrote:

Does it mean that we will put order at the close of next candle after the vertical line (because to see the peak we must wait 1 more candle) ??

It’s not as simple as that.. I wish it was.

The point that I will emphasize is that we need to understand why the price moved like the way it did in order to place a trade properly. Price moves because of buyers and sellers, supply and demand. This indicator only helps a bit in determining supply and demand. It’s not the full answer.

Rahat Lukum wrote:

I understand no source will be given, but maybe enough hints to replicate the calculation part on other platforms?

If you look at the following:
http://www.penguintraders.com/forums/topic/bull-bear-power-indicator/#post-4415
You will see the candles that were identified as the pattern and I explained it in detail there and also marked them on the chart. Just spend some time looking through it

Focus, Patience, Determination & Order in chaos

[George]

Hi saver0, I have question. :) Like this indicator, think it’s awesome but i need something. You posted picture with name “power_of_indicator“. I need settings you used here. I have some idea how to trade, will be thankful :) I tried the same, but im not sure. Well i will add this picture here, so you will know what i mean. To be sure. :)

 

 

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[Anonymous]

You have to add in the Moving Average period 1. Also set show diff to True on Saver0’s bull bear indi…

[Saver0]

George wrote:

I need settings you used here. I have some idea how to trade, will be thankful :) I tried the same, but im not sure. Well i will add this picture here, so you will know what i mean. To be sure. :)

Honestly I’m not even sure the exact settings I used.. but try something like
timeFrame: 5-M5
showDiff: true
last_bars: 120
Applied to the H1 chart.

To get the price on there, just drop in the “Moving Average” indicator that comes with MT4 into the same chart window and select Apply to: “First Indicator’s Data” with MA Period of 1. This will apply the MA to the indicator but now the trick is to go back to the settings of this indicator and set Apply to: “Close”. This will keep the MA on the same chart window and it will be the close price.

Hope that helps

• This reply was modified 9 years, 5 months ago by Saver0.

Focus, Patience, Determination & Order in chaos

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