When searching for points of entry to increase, we need firstly to take into account the Bears Power signals. In this case, Bulls Power serves as an auxiliary indicator.
You can open an Up trade in two cases:
– Bears Power is below zero and moving up. The EMA line is also going up, confirming the uptrend.
If the last column of the Bulls Power histogram is higher than the previous one, it additionally confirms the signal.
Do not enter the market if Bears Power is going above zero. In this case, there is a possibility that the trend will turn down, and the trade will be unprofitable.
– A bullish divergence has formed between the price chart and Bears Power.