Bulls Power / Bears Power (Elder)
Elder's twin-power indicators split "how high buyers can push" and "how low sellers can slam" into two histograms: paired with EMA13, they read the real thrust of both sides of the fight.
What it is
Bulls Power / Bears Power, invented by Alexander Elder: Bulls = High − EMA(13); Bears = Low − EMA(13). Two histograms around zero: tall Bulls = buyers can push price far above the average (strong offense); deep Bears = sellers can slam price far below it (strong pressure). Elder designed them to pair with EMA13: the average sets the trend direction, the powers time trend-side entries — the entry module of the Triple Screen system.
Origin
The twin powers come from Elder's "Trading for a Living" (1993, same book and system as the Force Index). Elder's observation: close-based momentum (RSI/MACD) cannot answer "who is dominating the fight right now" — comparing the high and low to the average directly measures the size of attacks and slams. MT5 ships them as two separate indicators (iBullsPower / iBearsPower), conventionally mounted as a pair.
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Download FreeThe formula
Two histograms (default 13-period EMA):
The geometry: Bulls = the day's high above the average (attack size); Bears = the day's low versus the average (can be negative — the low already below it). Both unfold symmetrically around EMA13 — the 13-period base defines the "power" ruler; changing it changes the ruler.
Worked example
A full offense-defense scenario:
- In an uptrend: Bulls runs tall (highs far above EMA13) while Bears stays shallow or even positive (lows hold above the average) — buyers fully in charge.
- Before the turn: price prints new highs but Bulls stops growing — attack size exhausted; Bears deepens — sellers are pushing near the average.
- Bears in charge: Bulls turns negative (even the highs cannot reach above the average) — even probing attacks are gone; the trend has flipped.
The twin histograms translate wicks into attack sizes — long upper wicks = Bulls shrinking, long lower wicks = Bears pressing. A measure far closer to the fight than close-based momentum.
How to read it
Combined reads (Elder's Triple Screen convention):
| Range | Common interpretation |
|---|---|
| EMA13 up + Bulls tall, Bears shallow | Buyers fully in charge — a healthy trend; pullbacks are buys |
| EMA13 up + Bears positive | Even the lows sit above the average — an extremely strong trend signature |
| EMA13 up + Bears deeply negative | A deep pullback below the average — watch for exhaustion |
| Bulls divergence | Price new highs without taller Bulls — attack size fading |
| EMA13 down + mirrored reads | The short side mirrors: deep Bears = sellers lead; Bulls turning negative = probes gone |
Elder's classic use: the trend direction decides long or short, the power histograms time it — in an uptrend, buy when Bears recovers to shallow (selling pressure exhausted); in a downtrend, sell when Bulls' recovery fades. Separating direction from timing is the system's core.
Common signals & usage
Trend-side exhaustion entry (Elder's use)
In an uptrend (EMA13 rising), Bears Power recovering from deep negative toward shallow/zero — selling pressure exhausted, the classic trend-entry timing (the Triple Screen's second screen).
Bulls divergence
Price new highs without taller Bulls — the attack is fading; strongest when it resonates with other momentum divergences.
Bulls turning negative (bearish confirmation)
Even the day's high fails above EMA13 — probing attacks have vanished: a heavyweight trend-flip confirmation.
Zero-scan of both
Both Bulls and Bears positive = extreme strength (the whole bar above the average); both negative = extreme weakness — identifying end-of-trend sprints.
Limitations & common mistakes
- Direction is mandatory: Elder's design is "EMA sets direction, powers set timing" — the histograms alone have no direction; using exhaustion signals counter-trend is out-of-system misuse.
- Role difference vs Force Index: FI includes volume (thrust), the powers read only price wicks (attack size) — the steadier substitute when forex tick volume is unreliable.
- The lagging EMA13 base: all power readings are relative to a 13-period average — in fast markets the EMA trails and readings briefly "fake exhaustion".
- Range noise: in chop both histograms swing around zero — every exhaustion signal fakes (the old rule: ADX/structure first).
- Never split the pair: MT5 lists them as two indicators — read them as a pair or lose half the information.
Bulls & Bears Power in MT5
The twin powers are two separate built-in MT5 oscillators (one histogram each), with MQL5 functions iBullsPower / iBearsPower:
| MQL5 functions | iBullsPower() / iBearsPower() |
| Default period | ma_period=13 (Elder's original, paired with EMA13) |
| Algorithm | High − EMA13 / Low − EMA13 |
| Buffers | 0=main buffer (histogram value) each |
| Display window | Sub-windows (same window or stacked, read as a pair) |
Both functions share the same parameter shape (ma_period + applied_price), defaulting to a 13-period EMA. In code, read both buffers together: Bulls > 0 and Bears > 0 = the whole bar above the average (extreme strength), and vice versa.
Behavior across timeframes
15-minute
Exhaustion signals fire often but are noisy — always pair with a larger-trend direction
1-hour / 4-hour
The Triple Screen's standard battlefield: trend-side exhaustion entries are most classic here
Daily
Divergences and the Bulls negative/positive flip confirmations are most reliable on dailies
Weekly
Weekly extremes are rare — joint all-positive/all-negative often marks the end of long campaigns
Indicator combinations
The standard pairings for the twin powers:
- With MA (built into the system): EMA13 sets direction, the powers time entries — the core entry module of Elder's Triple Screen. MA
- With Force Index: the powers read price attacks, FI reads volume thrust — two "power" dimensions of Elder's system complementing each other. FORCE
- With ATR: power signals enter, 2×ATR stops — bolting the risk module onto the system. ATR
FAQ
Q Why are Bulls Power and Bears Power two indicators?
Because they measure two directions of attack: Bulls = high − EMA13 (how far buyers can push above the average), Bears = low − EMA13 (how far sellers can slam below). Elder designed them as a pair — MT5 implements them as separate indicators, conventionally read side by side.
Q What does positive Bears Power mean?
That even the day's low sits above EMA13 — the sellers' maximum slam cannot break the average: an extremely strong bullish signature (common in steep trends). The mirror: Bulls turning negative means even the highs cannot reach above the average — confirmed bearish dominance.
Q What are the exact conditions for the "Bears exhaustion buy"?
Triple Screen convention: an uptrend confirmed (EMA13 rising, first screen) + Bears Power recovering from deep negative toward shallow/zero (second screen, selling pressure exhausted) + optionally an FI(2) negative pulse as a tie-breaker. Direction and timing stay separate — never use this buy inside a downtrend.
Q How do the powers differ from the Force Index?
Same Elder system, different dimensions: FI = (close change × volume) — thrust with volume; the powers = wick distances versus the average — pure price attacks. When forex/CFD tick volume is unreliable the powers are the steadier substitute; with reliable volume, cross-check both.
Q How do I add the twin powers in MT5?
Menu: Insert → Indicators → Oscillators → Bulls Power / Bears Power (two separate entries), or drag them from the Navigator onto sub-windows. Default period 13 — the convention is to mount both and read them as a pair.
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