Using Total Power to Track Bullish and Bearish Bar Strength

Summary

The Total Power Indicator combines the standard Bull Power and Bear Power measures with counts of bullish- and bearish-dominated bars over a lookback period. It expresses relative bullish and bearish power as continuous lines, alongside a total line based on the absolute difference between the two. The stated purpose is to add a longer-term view that the original power indicators lack. Users can configure the lookback and power periods, choose whether alerts use the current or last completed candle, and enable alerts for extreme readings or line crossovers.

The document proposes several ways to use the indicator: consider a reversal trade when either side reaches 100, use a Bull/Bear crossover to choose a long or short direction, and use a crossover with the total line as a cautious exit signal. These are suggested interpretations, not tested rules; no performance data or risk controls are provided. The text characterizes the 100 reading as a strong overbought or oversold signal that can precede reversals, but gives no supporting evidence or definition of how reliably it does so.

Key ideas

• The indicator tracks relative bull and bear power over a configurable lookback period.
• Its total line represents the absolute difference between bullish and bearish power.
• A reading of 100 or a Bull/Bear crossover can be interpreted as a potential trading signal.
• Crossovers with the total line are suggested as a conservative exit cue.
• The suggested uses are not accompanied by performance evidence or risk-management rules.

Tags

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