3 replies to this topic

[mss]

I added the BOP to the charts just for fun. This gives a second indicator for compairson. Comments are always welcome. mss

[dougie]

can you explain this methodology briefly? thanks

[mss]

can you explain this methodology briefly? thanks

Pivot points are used primarily as support and resistance levels with the pivot point the best support resistance level.

Here is the formula used in pivot points (this is for each bar, regardless as to if it is a week, day, 10 min., 30 min., etc.):

* the Pivot Point is the average of high, low and close
* support level 1 is Pivot Point x 2 - High
* support level 2 is Pivot Point - High + Low
* resistance level 1 is Pivot Point x 2 - Low
* resistance level 2 is Pivot Point + High - Low

BOP =Balance of Power (a measure of money flow)
I USE THE FOLLOWING CALCULATIONS: (FOR EXCEL)
BULL-OPEN=(HIGH-OPEN)/(HIGH-LOW) BEAR-OPEN=(OPEN-LOW)/(HIGH-LOW)
BULL-CLOSE=(CLOSE-LOW)/(HIGH-LOW) BEAR-CLOSE=(HIGH-CLOSE)/(HIGH-LOW)
BULL-O/C=IF CLOSE>OPEN,(OPEN-CLOSE)/(HIGH-LOW),IF NOT,0
BEAR-O/C=IF OPEN>CLOSE,(OPEN-CLOSE)/(HIGH-LOE),IF NOT,0
RAW POWER=(BULL OPEN)+(BULL CLOSE)+(BULL O/C)/3 MINUS
(BEAR OPEN)+(BEAR CLOSE)+(BEAR O/C)/3
Use any moving average you think gives a good indication on the RAW POWER number. I find the most useful for me is the various fib. ratios, 3, 5, 8, 13, etc.
Hope this answers your question. The chart is daily plots of the close and BOP with weekly support and resistance pivot.

[dougie]

thank you!