. . .more on Formulas 

This raw BOP value can then be optionally smoothed.

. . . more on Charts 

Above is a Daily Candlestick Chart of the Adobe Systems (ADBE).  The Balance of Power Indicator can be seen in the lower pane, drawn as an oscillator in red and blue.  The BOP oscillator is based on the preferences seen below.

. . . more on Preferences 

• Smoothing Type - Type of smoothing used to smooth the raw BOP values.

• Smoothing Period - Period used to smooth the raw BOP values.

• Draw As: - The resulting oscillator can be drawn as a continuous line, a connected line, a solid histogram, or a hollow histogram.

• Color - BOP line or histogram color(s) as seen in the chart.

According to Livshin, "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."  Although the article goes on to describe a somewhat involved calculation of the BOP, it breaks down to nothing more than...

(CL - OP)/(HI - LO)

This resulting raw BOP value can then be optionally smoothed using any moving average type, and can be drawn as a line or histogram.

The BOP oscillates between extremes of -1 and +1.

Livshin goes on to make the following statements...

• For daily charts, a 14-period moving average is recommended, though the number of periods varies depending on the nature of the market and the time frame.

• One of the most important properties of BOP is the level at which it clusters its tops and bottoms.  During bull markets, its tops often reach the upper limit and never reach the bottom level.  During bear markets, the picture is reversed.

• BOP supports price divergence, trends, and overbought-oversold levels.

• A change in the BOP trend serves as a warning signal and should be confirmed by a change in the price direction.

The Balance of Power Indicator can be accessed in RTL language using the the token BOP.  The following scan detects when the BOP crossing into positive territory.

BOP > 0 AND BOP <= 0