Total Power = Abs (BearCount - BullCount)*100 / Lookback Period;
BearPower = BearCount*100/ Lookback Period;
BullPower = BullCount*100/Lookback Period.
The Elder-ray index was developed to determine trends; the idea of bulls and bears pressure was basic for the index.
The method used in the Elder-ray index is based on three technical indicators, which show the way bullish and bearish price fluctuations are formed according to consensus price. The index includes the 13-day EMA and two Alexander Elder’s indicators - Bull and Bear Power.
The drawback of this approach is the following one it does not make clear signals on market entrance amid absence of global outlook for price movements.
The Total Power Indicator (TPI) for metatrader was developed to provide particular outlook for the market price changes, as well as the difference between current prices and the previous ones.
There are several methods to use this technical indicator:
LookbackPeriod = 45
PowerPeriod = 10