Total Power Indicator is based on the two standard indicators: Bear Power and Bull Power. The indicator calculates how many bullish and bearish bars were there during a set look-back period and then calculates the proportional index for bears, bulls and total (calculated as the difference between bulls and bears) for the current bar. This way, we get continuous lines of the relative average bear and bull power over a period of time, removing the main disadvantage of the original Bear/Bull Power indicators — the lack of long-term perspective. The MetaTrader 4 version of Total Power Indicator was created by Daniel Fernandez of Asirikuy.com in 2011. The version for MT5 is now also available.
LookbackPeriod (default = 45) — the main period of the indicator. Determines the amount of bars to look back to count the bear/bull-dominated ones.
PowerPeriod (default = 10) — the period of the original Bear Power and Bull Power indicators.
How to trade with Total Power Indicator
There are plenty of different ways this indicator could be used in:
- The most surefire entry method (but the most rare) is to wait for both Bull (or Bear for selling) and Total lines show 100 value and enter a long trade (or a short one if it's Bear line).
- The cross of the Bear and Bull lines can also be used to enter trades. If the Bull line resulted above — go long, if the Bear line is now above — go short.
- The cross of the Bull and Bear lines with the Total line can be used both to enter positions and to close them. If the Bull line crosses Total from below, enter long, if the Bear line crosses Total from below, go short. If the lines cross Total from above — close the corresponding position.
- Alternative method is to use the certain indicators levels rather than crosses to enter trades. For example, go long/short if Bull/Bear line is above level 66.
How to download and install an indicator
In order to install the indicator on your MT4 or MT5 platform, you need to follow these steps:
- Click on the “Download Indicator” button located at the bottom of the screen.
- Save the file to your computer.
- Extract and move the files into the MT5>Indicator folder of the MetaTrader4 software file directory.
- Restart your Metatrader platform.
- Navigate to “Indicators.”
- And select the “Total Power” template to apply it on the chart.
Note: This indicator was developed by a third party. AtoZ Markets does not carry any copyrights over this trading tool.