Balance of Power
The Balance Of Power is an Oscillator Indicator invented by Igor Livshin. The explanation that Lisvin gives for his indicator is: "the balance of power (BOP) indicator measures the strength of the bulls vs. bears by assessing the ability of each to push price to an extreme level." The BOP brings out hidden patterns of accumulation or distribution. Calculation
We can explain BOP trading signals with three techniques: 1. Trend Direction:
2. Divergence: There are several type of divergence between BOP and prices. Classic Divergence
Hidden Divergence
3. Overbought or Oversold Conditions The BOP can be used to find the overbought or oversold condition in price movements through observation. Traders can set overbought and oversold levels based on the indicators highest and lowest point ![]() |
