Total Power Indicator
The Total Power indicator for MetaTrader is a trading tool that evaluates the dominance of bulls/bears in the market.
Description
The Total Power indicator for MetaTrader is a trading tool that evaluates the power of bulls/bears in the market. It was built with the 13-day EMA and a technical component that analyzes the strength of the bulls/bears.
The indicator looks back at past market prices and compares them with the current market condition to determine the dominance between the bulls/bears. What’s more, it is a technical tool that would come in handy for both novice and advanced forex traders to easily define a trend direction/reversal. Besides, it is also great for scalping, day/intraday, and swing trading.
How do you use the Total Power indicator?
The Total Power indicator comes with red and yellow lines that denote the bears’ and bulls’ power, respectively. The blue line on the other depicts the total strength of the trend.
The indicator uses signal lines to depict different trend conditions; they are as follows:
- A potential bullish move is signaled when the yellow line (bull power) crosses the red line (bear power) from the bottom to the upside.
- A bearish move is signaled when the red line (bear power) crosses the yellow line (bull power) to the downside.
- Finally, the intersection of the yellow (bull power) and red (bear power) lines above the 50-level depicts a bullish/bearish trend.
How to Trade With the Total Power Indicator
The above image shows the action of the indicator on the EURUSD chart in the H4 time frame. It illustrates how to generate a high-probability trade signal with the indicator in line with price action.
The image shows that the yellow line of the indicator crosses the red line, which signifies a potential bullish move. Furthermore, the yellow line moved farther apart from the red line, which also indicates more bullish power.
Finally, the bullish engulfing candlestick pattern also suggests the continuation of the bullish trend, which also doubled as the buy entry. The above principle can also be used to generate a sell signal.
Conclusion
The Total Power indicator for MT4 is ultimately a trading tool that is suitable for trend analysis and reversal. Finally, it is free to download.