The indicator measures the buying and selling force between the buyers and sellers in the form of a histogram/oscillator by using a BOP equation:
BOP = Moving Average of [close – open)/(high – low)]
Igor Levshin first introduced the Balance of power in the August 2001 issue of Technical Analysis of Stocks & Commodities magazine.
Features
- Quickly find the buying and selling pressure among the traders.
- It comes with simple inputs and an interface.
- All Metatrader alerts included.
Applications
- It can be used to find buy-sell entries using the zero-line crossovers.
- It can be used to identify overbought and oversold markets.
- Like any other oscillator, it can be used to find regular and hidden divergences between the price and BOP oscillator.
- It can also be used to find bullish and bearish market trends.
