BOP = BALANCE OF POWER, a measure of money flow based on price. Also referred to as BMP, balance market power. It is useful in forecasting direction changes based on the daily price action of the Index or stock you are following. When the calculations yields the "raw number" then any SMA or EMA may be applied. Crossovers of two MAs' are sometimes useful. Short term 13&21, IT 21&34, LT single 89, 144 ids' trends well.
VERY REFINED: 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,(CLOSE-OPEN)/(HIGH-LOW),IF NOT,0
BEAR-O/C=IF OPEN>CLOSE,(OPEN-CLOSE)/(HIGH-LOW),IF NOT,0
RAW POWER=(BULL OPEN+BULL CLOSE+BULL O/C)/3
MINUS (BEAR OPEN+BEAR CLOSE+BEAR O/C)/3
SPREADSHEET TAKE-OFF
BULL-OPEN =(D2-C2)/(D2-E2)
BEAR-OPEN=(C2-E2)/(D2-E2)
BULL-CLOSE=(F2-E2)/(D2-E2)
BEAR-CLOSE=(D2-F2)/(D2-E2)
BULL-OC=IF(F2>C2,(F2-C2)/(D2-E2),0)
BEAR-OC=IF(C2>F2,(C2-F2)/(D2-E2),0)
RAW POWER=(G2+I2+K2)/3-(H2+J2+L2)/3
C=OPEN G=BULL-OPEN
D=HIGH H=BEAR-OPEN
E=LOW I =BULL-CLO
F=CLOSE J=BEAR-CLO
K=BULL-O/C
L=BEAR-O/C
M=RAW POWER
SIMPLE VERSION: TRADERS' TIPS, AUGUST 2001, STOCKS & COMMODITIES MAG.
This balance of market power indicator discussed this month by Igor Livshin breaks down to nothing more than:
(CL - OP)/(HI - LO)= BOP
regardless of whether the CL is greater than OP. When you plug in the variables and break it down to its simplest form, you get:
Change / Range = BOP or BMP
FOR CODES TO SOME TRADING PLATFORMS: LINK: http://www.traders.c...radersTips.html
BOP - BALANCE OF POWER
Started by
mss
, Feb 10 2007 03:05 PM
2 replies to this topic
#1
Posted 10 February 2007 - 03:05 PM
WOMEN & CATS WILL DO AS THEY PLEASE, AND MEN & DOGS SHOULD GET USED TO THE IDEA.
A DOG ALWAYS OFFERS UNCONDITIONAL LOVE. CATS HAVE TO THINK ABOUT IT!!
A DOG ALWAYS OFFERS UNCONDITIONAL LOVE. CATS HAVE TO THINK ABOUT IT!!
#2
Posted 10 February 2007 - 04:08 PM
A fine thing! Thanx!
#3
Posted 10 February 2007 - 04:35 PM
The Smartrader specsheet from your attached link shows nicely how the
components build into subformulas and into the final formula.
components build into subformulas and into the final formula.