The Balance of Power indicator measures the market strength of buyers against sellers by assessing the ability of each side to drive prices to an extreme level. The calculation is: Balance of Power = (Close price – Open price) / (High price – Low price) The resulting value can be smoothed by a moving average.
Traders may use this indicator to help:
- Identify the direction of a trend.
- Find divergences between the price and the BoP in order to identify a potential trend reversal or trend continuation setup.
- Take advantage of overbought and oversold conditions.
(description found on the web)
Code converted from Pinescript (tradingview) version by a request in the english indicators forum section.
//PRC_True Balance of Power | indicator
//Nicolas @ www.prorealcode.com
//Sharing ProRealTime knowledge
//converted from Pinescript version
//per=30 //periods for Emoline
//---end of settings
trhi = max(high, close) //true high
trlo = min(low, close) //true low
trop = close //true open
bop = 100*(close-trop)/(trhi-trlo) //True Balance of Power as percent
lin= 1.5*linearregression[per](bop) //linear regression as emoline
if bop<0 then
return bop coloured(r,g,0) style(histogram) as "BOP", lin style(line,3) as "Emoline"
No information on this site is investment advice or a solicitation to buy or sell any financial instrument. Past performance is not indicative of future results. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.ProRealTime ITF files and other attachments :