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Indicator-A-Day
 24. Volume Breakdown
 23. PriceTime Cycles
 22. Trend Intensity Index
 21.
Bollinger Bands
 20.
Balance of Power
 19. RSI
 18.
Fib Retracements
 17. Parabolic SAR
 16.
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 13.
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 11.
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 10. Statistics

   9. TLB Oscillator
   8. Weighted MA
   7. Exponential MA
   6. Moving Average
   5. Regression Review
   4. Reg Acceleration
   3. Regression Slope
   2. Regression Bands
   1. Linear Regression

 

Investor/RT Tour ( more on Technical Indicators )
Balance of Power (BOP)
The Formula . . . 

. . .more on Formulas 


(CL - OP) / (HI - LO)

This raw BOP value can then be optionally smoothed.

 
The Presentation . . . 

. . . more on Charts 

Balance of Power Chart

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.

 
The Preferences . . . 

. . . more on Preferences 

Balance of Power 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.

 
The Description . . .
Balance of Power has been added to Investor/RT, both for charting and for use in scans, custom indicators, and signals (token BOP).  The Investor/RT implementation of the BOP is based on an article by Igor Livshin that can be found on p. 18 of the August 2001 issue of Stocks and Commodities Magazine.

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.

 
RTL Token . . . BOP ( more )

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
  

Keyboard Adjustment . . . (version 5.6 and later)
The smoothing period involved in the BOP indicator can be adjusted directly from they keyboard without opening up the preference window.  First, select the indicator, then use the up and down arrow keys to adjust the smoothing period up or down by 1.  For more information on technical indicator adjustment, click here.
User Strategies . . . 
 
    Coming Soon   04/11/02
 
If you have a User Strategy involving BOP that you'd like to share, please email to support@linnsoft.com