Author: earnforex
The Total Power Indicator is a powerful tool designed for traders using MetaTrader 5. It builds on the foundation of two standard indicators: Bears Power and Bulls Power.
This indicator works by analyzing the number of bullish and bearish trend bars over a specified period, while also calculating the proportional relationship between bears, bulls, and the overall trend for the current bar. The result is a continuous line that reflects the average bullish and bearish strength over a given timeframe, overcoming the key limitation of traditional indicators, which often lack long-term perspective.
The original MetaTrader 4 version of the Total Power Indicator was developed by Daniel Fernandez from Asirikuy.com.
Input Parameters:
- LookbackPeriod (default = 45): This parameter sets the basic indicator period, determining the number of bars used for assessing bullish and bearish trends.
- PowerPeriod (default = 10): This corresponds to the original periods used in Bears Power and Bulls Power.
The Total Power Indicator comes in two variations, each offering unique insights into market dynamics.
Here are a few effective strategies to leverage this indicator:
- The most reliable method, albeit slower, involves waiting for both the Bullish and Total lines to reach 100 before entering a long position (or short if the Bearish line is at 100).
- Look for crossings between the Bearish and Bullish lines. If the Bullish line crosses above the Bearish line, it's a signal to buy; conversely, a cross below suggests a short position.
- Monitor crossings of the Bullish and Bearish lines with the Total line for entry and exit points. If the Bullish line crosses the Total from below, it's time to go long. If the Bearish line crosses from below, consider going short. Crossing from above signals that it might be time to close your positions.
- Alternatively, you can use specific indicator levels instead of line crossings. For instance, opening a long/short position when the Bullish/Bearish line exceeds level 66 can also be a viable strategy.
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