Sultonov’s Smoothed Differential Indicator for Bull and Bear Power

Summary

This document explains a differential indicator that estimates bullish and bearish price pressure from closing-price changes over a user-selected period. Bull power averages only positive close-to-close increments, while bear power averages only negative increments, each normalized by the count of qualifying moves. The resulting lines receive additional smoothing, with configurable period, smoothing method, depth, and related parameters.

For interpretation, the document compares the two lines: whichever sits higher represents the stronger side, and their crossing or associated color change is presented as a possible trend-change signal. A trader might use the crossing to open a position in the direction of the newly dominant line. The source describes an MQL4 implementation and gives the indicator’s original publication date, but provides no backtest, asset-specific evidence, or measured predictive performance. It also depends on a separate smoothing library. The suggested crossing rule is therefore an indicator interpretation rather than a validated trading system, and the text does not specify exits, risk limits, or how to handle false signals.

Key ideas

• Bull power aggregates positive close-to-close changes over a selected period and normalizes by their count.
• Bear power applies the same approach to negative close-to-close changes.
• Both power lines receive additional configurable smoothing.
• The higher line is interpreted as the dominant side, while a crossing may indicate a change in trend direction.
• The document gives no performance testing or rules for managing trade exits and risk.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.