WebCab Technical Analysis Web Services for Delphi v1.1

MarketStrength.BalanceOfPower Method 

Implements the Balance of Power (BOP) indicator, created by Igor Livshin; which captures the struggle between the Bulls and Bears throughout a trading period.

public double BalanceOfPower(
   double open,
   double close,
   double high,
   double low
);

Parameters

open
The opening price of the asset on the trading period under consideration.
close
The closing price of the asset on the trading period under consideration.
high
The traded high of the asset on the trading period under consideration.
low
The traded low of the asset on the trading period under consideration.

Return Value

The double value of the Balance of Power indicator for the trading period under consideration.

Remarks

Interpretation

The BOP indicator for each trading period lies within the range [-1,1]. When the BOP indicator is towards the high if its range it will signifies that the Bulls are in control, conversely when the indicator is towards the lows of its range it signifies that the bear are in control. If the indicator move from a high positive range to a lower positive range it signifies that the buying pressure is decreasing. Conversely, if the indicator move from a low negative range to a higher negative range it signifies that the selling pressure is decreasing.

Evaluation

The BOP indicator is evaluated by the following formulae:

BOP = (Close - Open)/(High - Low),

where Close is the periods closing price, Open is the periods opening price, High is the highest traded price during the period and Low is the lowest traded price during the period.

See Also

MarketStrength Class | Indicators Namespace | BalanceOfPowerOverPeriod - a generalization of this indicator which calculates the values of the Balance Of Power indicator over specified period.